South Korea Set to Pilot CBDC in 3 Regions

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As reported by a South Korean media site, the Bank of Korea has stated that three regions have been selected for the testing of its central bank digital currency (CBDC), that does not comprise its capital, Seoul.

South Korea to Pilot CBDC in Jeju, Busan, and Incheon

The Bank of South Korea announced that Jeju, Busan, and Incheon have been picked as participants to serve as the “private target CBDC test bed.” 

It stated that the format of the CBDC regional closed testing is going to be similar to the existing local currency arrangement in operation in various parts of the country.

CBDC Electronic Wallet

According to the source, the Bank of South Korea intends to choose one of the regions mentioned above, as well as experiment with payments and distribution on the general level and secure franchises that may take CBDC payments.

As per an official from the bank: “The CBDC electronic wallet app will allow not only local residents but also many civilians, such as tourists to [partake].”

Decision was ‘Greatly Inclined’

A banking official in South Korea said the volume of suitable individuals in Busan is “so large that the Bank of Korea is burdened in many ways,” and hence its decision was “greatly inclined” to Jeju.

According to the local research, the local currency programme faces less “technical barriers” than CBDCs. Jeju, Busan, and Incheon all have corresponding local currencies, known as “Tamranjeon,” “Dongbaekjeon,” and “Incheon e-Eum,” respectively. 

South Korea’s Top Exchanges to Meet with Regulators

The South Korean National Police Agency intends to meet with the region’s top five cryptocurrency exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, as well as global leading digital asset company Binance, in order to talk about an infrastructure aimed at encouraging real-time wallet address keeping track of and freeze funds functions. 

All of the above firms are markedly registered in South Korea’s Financial Intelligence Unit (FIU). CBDCs are among the limited kinds of digital assets that have garnered worldwide traction, with a lot of governments and central banks preferring them over Bitcoin. The International Monetary Fund (IMF) is reported to create a platform for CBDC to facilitate cross-border payments.

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