The central bank of South Korea wants to release a digital version of the won. The Institute of Finance is now looking for a tech company to help design that coin. The digital won will be tested this year starting in August.
South Korea is the newest country to consider Digital copy From its national currency.
- The Bank of Korea (BoK) announced that it is currently looking for a partner from the tech world to help it develop and test digital won.
- Those who follow the cryptocurrency and cryptocurrency world closely should not be surprised. The Bank of Korea was actually launched in February Book That explored the potential legal problems for such a coin.
- Another clue we received recently: Since the end of April, it has been illegal for the country’s financial regulators to invest in cryptocurrencies. “This procedure aims to avoid conflicts of interest,” she said at the time.
- The Bank of Korea’s own logic: “The number of monetary transactions is decreasing. We are taking steps to ensure our ability to implement rapid shifts in the financial system.
- Starting in August, the bank wants to test digital won via smartphone payments, transfers, and even by registering collateral.
- The test will run through December, but could be extended well into 2022.
The central bank wants to respond to this trend with such a digital won Central bank digital currencies (CBDCs) that are starting to appear pretty much ubiquitous. These currencies are central banks’ response to the increasing popularity of decentralized digital currencies.
An overview of all CBDCs in development
- China You already come a long way with the introduction of the digital yuan, or eCNY. Thousands of Chinese are in Shenzhen Technology Center has been granted access to use the coin for several weeks. Participants reportedly had little interest in converting to digital currency.
- However, the Chinese government will continue its project. at Hong Kong The coin is also currently being tested for use Outside the borders of the country.
- from US Central Bank This year will start with five pilot programs to test a “digital dollar”.
- There is also “Britcoin” in the works in it United kingdom. The launch of the central bank currency will be given a priority role in developing the post-Brexit economy.
- from Digital Euro Also ready in the oven for a while. There will be a penalty benefit of 3,000 euros to one day stop all paper money from smoking.
- from The Central Bank of Israel Meanwhile, it is also studying the possibility of launching a digital shekel.
- from The Bank of Japan Testing began in April The digital yen. The trial will be evaluated after one year.
- Also in the first quarter of 2022 Russia Digital copy of the ruble To test. Ultimately, it can also be used to pay abroad, according to the Russian Central Bank.
- from Bahamas They have had their own digital version of local dollars since last year.
The US dollar may be the current currency standard, but China wants to make the digital yuan the new dominant currency. “South Korea must devise strategies to determine the role it will play in this new monetary season,” the South Korean central bank said.