The South Korean central bank announced on October 7 that it will begin the distribution phase of the central bank’s digital currency, or CBDC, a pilot scheme next year.
According to an article published in local media by The Korea Herald, this will lead to the digital victory going into circulation as financial institutions participate in the distribution and transactions recorded on the blockchain.
As Cointelegraph reported, the Bank of Korea (BKB) pilot program was launched for 22 months in March this year. Dissemination is the third and final phase of the program and appears to be going according to plan, with a roadmap presented when the scheme is launched.
The first phase was completed in July and the CBDC requirements and design were identified along with an overview of the technologies required to complete the project.
The second phase is currently underway and focuses on business intelligence and related processes. This will run until the end of 2020 and will lead to the final phase of construction and distribution.
Despite the significant progress of the pilot program, the Bank of Korea confirms that it currently has no firm plans to launch a central bank digital currency after its completion. Instead, they will be fully prepared to take such action if market conditions, whether national or global, suddenly change.
This could happen when the “almost” Chinese digital yuan finally launches, as reports show South Korean merchants will be open to accepting this as a form of payment.