The primary objective during this pilot stage is to assess the feasibility and effectiveness of issuing and distributing the digital currency.
The Bank of Korea (BOK), South Korea’s central bank, plans to conduct a pilot program for its central bank digital currency (CBDC), involving 100,000 Korean citizens. The testing phase, scheduled for approximately September to October 2024 and lasting three months, will focus on participants using the CBDC solely for payments, with no options for storage, exchange, or transfers to other users.
As part of this initiative, the BOK will collaborate with the Korea Exchange to incorporate the CBDC into a simulation system for carbon emissions trading. This effort aims to test the viability of delivery versus payment transactions in the context of the new digital currency.