Bank of Korea explores technology to develop digital currency

South Korea's monetary policy regulator is taking steps to create its own digital currency. The Bank of Korea is currently looking for a technology provider to develop a test environment for the project. The news came after major commercial banks expressed doubts about their partnership with national cryptocurrency exchanges. The Bank of Korea (BOK) said on Monday that it has launched the trial platform for the selection of the CBDC technology provider through an open bidding process. Its task will be to create a pilot platform for the launch of the Central Bank of South Korea's (CBDC) digital currency. A Reuters report states that the bank's plan to investigate and sue the matter is the first step for Asia's fourth economy in this direction. With the expansion of the cryptocurrency space that provides an alternative to traditional finance, dozens of central banks around the world have launched CBDC projects. China has developed its digital yuan, the Federal Reserve is working on digital dollar prototypes, the Eurozone ECB plans to create a digital euro, and the Russian Central Bank will exhibit a prototype digital ruble this year. A BOK official said at a press conference: The share of cash transactions is falling significantly. Our current steps are to prepare for changes in the payment system. The Korean central bank also announced that the test platform will facilitate simulations of commercial banks and points of sale. Trials will also cover mobile phone payments, money transfers, and deposits. The pilot program is scheduled to run between August and December this year, but the second phase may extend testing. Commercial banks hesitate to deal with crypto exchanges Decentralized cryptocurrencies have caught the attention of South Koreans as Korea's central bank prepares to explore state-controlled digital currency issuance options. Local price

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