According to a report published today, The Bank of Korea has concluded the first phase of a central bank digital currency (CBDC) simulation project in December 2021.
During the initial test phase, basic functions of a CBDC including manufacturing, issuing and distribution in a simulation environment, were analyzed. The bank is pleased and states that the CBDC “works normally” under test conditions.
Based on the positive outcome, the South Korean central bank will be adding more functions to the package and continue its trials. New additions to be implemented are features such as offline payments and adding personal information protection enhancement technologies.
To confirm if the CBDC works as effectively in a real environment, the bank will start a second phase. Once the second phase is completed in June, a comprehensive evaluation of the project will take place while more usability experiments in cooperation with financial institutions will continue to run.