South Korea’s central bank said it’s signed a deal with a local IT service provider to develop a system for the feasibility test of a central bank digital currency (CBDC). Since August 2021, the BOK has been carrying out a mock test of a CBDC for inter-financial institution transactions, according to Yonhap News Agency.
In October this year, the central bank, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) said they will expand the feasibility test to the realm of transfers and settlements among financial institutions based on a token by the end of next year.
Under the 9.68 billion-won (US$7.4 mn) deal, LG CNS will develop a set of systems for the joint test by the Bank of Korea (BOK) and financial regulators for the feasibility test of a CBDC.