Bank, Bank of Korea, banks, bok, CBDC, crypto exchanges, crypto traders, Cryptocurrencies, Cryptocurrency, Digital Currency, Financial Institutions, korea, korean, partner, pilot platform, project, provider, South Korea, technology, Test, trials

South Korea’s monetary policy regulator is taking steps to create its own digital coin. Bank of Korea is now looking for a technology provider to develop a test environment for the project. The news comes after major commercial banks expressed skepticism over their cooperation with domestic cryptocurrency exchanges.

Central Bank of Korea to Launch Pilot Platform for CBDC

The tech supplier will be chosen through an open bidding process, Bank of Korea (BOK) announced Monday. Its task will be to set up a pilot platform for the launch of the South Korean central bank digital currency (CBDC). A Reuters report notes that the bank’s plan to research the matter and conduct trials is the first step in that direction taken by Asia’s fourth-largest economy.

With the expansion of the cryptocurrency space providing an alternative to traditional finances, dozens of central banks around the world have set CBDC projects in motion. China has been developing its digital yuan, the Federal Reserve is working on digital dollar prototypes, Eurozone’s ECB is mulling whether to create a digital euro, and the Bank of Russia will present a digital ruble prototype this year. Speaking during a press briefing, a BOK official commented:

The Korean central bank further detailed that the test platform will facilitate simulations of commercial banks and retail outlets. The trials will also cover mobile phone payments, fund transferring, and deposit processing. The pilot program is scheduled to run between August and December this year, but a second phase may extend the testing.

Commercial Banks Reluctant to Work With Crypto Exchanges

While the Korean central bank is preparing to explore options to issue a state-controlled digital currency, decentralized cryptocurrencies have captured the attention of South Koreans. The local price of the leading cryptocurrency, BTC, reached a record high of around $72,000 this year, but market volatility has raised the regulator’s concerns. BOK recently stated its intentions to closely monitor crypto transactions through real-name accounts used by Korean traders.

Major banking institutions, however, have expressed skepticism over their cooperation with cryptocurrency exchanges. According to a report by the Korea Herald, financial groups such as Hana have decided not to issue real-name bank accounts for crypto trading. Others that have, like K Bank which allows accounts for crypto traders on Upbit, see little reason to continue to do so. A top Woori official, Woori being KB’s second-largest shareholder, was quoted by Yonhap saying:

Upbit is among only four domestic crypto exchanges, along with Bithumb, Coinone, and Korbit, currently working with commercial banks to implement the real-name system. In April, Korea’s Financial Services Commission warned that around 200 coin trading platforms currently operating in the country could be should down under new regulations to be enforced in September. The registration of real-name accounts is one of the key requirements smaller crypto exchanges fail to meet.

What do you think about the Bank of Korea’s plan to develop digital currency? Share your thoughts on the project in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Hong Kong to Connect Digital Yuan With Domestic Payments System in Cross-Border Trials

Financial authorities in Hong Kong have announced a second phase of trials for mainland China’s digital currency. As part of the upcoming tests, the city will link the Chinese digital yuan to its domestic payments system to evaluate the CBDC’s usability in cross-border scenarios. Hong Kong Residents to Load E-CNY Wallets via Mobile Phones China […]

Xem chi tiết: Hong Kong to Connect Digital Yuan With Domestic Payments System in Cross-Border Trials

Mystery Whale Returns by Moving $35 Million — Miner Transfers 1,000 ‘Sleeping Bitcoins’ from 2010

Two months after the mystery mining whale from 2010 transferred a string of 20 block rewards with 1,000 bitcoin on March 23, it seemed as though the entity was finished, after spending 10,000 bitcoin total. However, it took 78 days for the whale’s next move, as another 20 blocks from 2010 were transferred on Wednesday […]

Xem chi tiết: Mystery Whale Returns by Moving $35 Million — Miner Transfers 1,000 ‘Sleeping Bitcoins’ from 2010

Crypto Payments App Bottlepay Is Now Available Across Europe

U.K.-based crypto payments provider Bottlepay has started offering services in other European countries. Users on the Old Continent will be able to send and receive even small amounts of euro and also buy, store and spend bitcoin with merchants accepting cryptocurrency. Bottlepay Promises Low-Cost Transactions in Euro and Bitcoin The Bottlepay app will allow Europeans […]

Xem chi tiết: Crypto Payments App Bottlepay Is Now Available Across Europe

Members of East Africa Community Explore Potential Use of CBDC for Alternative Regional Payment System

Six East African states are reportedly set to explore the possibility of using central bank digital currencies (CBDC) as an alternative to their shared payment system. The six countries, which are all members of the East Africa Community (EAC) trading bloc, are hoping this alternative will create a pathway that leads to the attainment of […]

Xem chi tiết: Members of East Africa Community Explore Potential Use of CBDC for Alternative Regional Payment System

Mike Novogratz: Bitcoin Investors Waiting for a New Narrative Shift

Mike Novogratz declared institutional investors are waiting for the next narrative shift in a recent interview at the Bitcoin 2021 conference in Miami. The CEO of Galaxy Digital thinks the market is now in a consolidation phase after the price crash last month. Novogratz also commented on what the rise of defi could mean for […]

Xem chi tiết: Mike Novogratz: Bitcoin Investors Waiting for a New Narrative Shift

Grand Theft Auto 6 to Feature a Fictional Cryptocurrency

One of the biggest franchises in the videogame industry, Grand Theft Auto, will feature in-game payments of “bitcoin†or another fictional cryptocurrency. Contractors will pay the player with this currency when they need to make anonymous, untraceable payments. This would constitute another push for Bitcoin awareness into mainstream media culture. Grand Theft Auto 6 to […]

Xem chi tiết: Grand Theft Auto 6 to Feature a Fictional Cryptocurrency

El Salvador Offers No Capital Gains Tax, Permanent Residence to Crypto Entrepreneurs

Nayib Bukele, president of El Salvador, has weighed in the future of his country now that there is a formal proposal for making Bitcoin a legal tender, announcing complementary measures. Bukele mentioned yesterday on Twitter there would be no capital gains on Bitcoin earnings, and also highlighted the possibility of offering permanent residence to crypto […]

Xem chi tiết: El Salvador Offers No Capital Gains Tax, Permanent Residence to Crypto Entrepreneurs

White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

Tim Wu, top advisor to the Biden administration on technology and competition policy, holds more than $1 million in cryptocurrency, shows a recently filed financial disclosure. The antitrust expert, who is known as a prominent big tech critic, has in the past questioned the value of bitcoin. Top Biden Advisor Tim Wu Is a Bitcoin […]

Xem chi tiết: White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

Polkadot’s Parachain Vision Materializes Following Successful Kusama Auction

Scammers Pick Bank Transfers Over Cryptocurrency, Australian Report Reveals

El Salvador Offers No Capital Gains Tax, Permanent Residence to Crypto Entrepreneurs

Government Cannot Stand in the Way of Crypto Technologies, Iran Minister Says

Weibo Cracks Down Crypto Related Accounts as China Strengthens Its Anti Crypto Stance

National Court of Spain Suspends John McAfee Extradition Hearing

US Pharmacy Chain Pharmcorx Accepts Cryptocurrency for Fast Covid Testing

Other Articles