- The Bank of Korea (BoK) is progressing in the development and testing of its central bank digital currency (CBDC).
- Three regions outside Seoul, namely Jeju, Busan, and Incheon, have been selected for a “private target CBDC test bed.”
- The BoK plans to experiment with public payments and distribution in one of these regions and establish franchises capable of accepting CBDC payments.
- The bank is collaborating with Samsung to build a platform for offline CBDC payments.
- The preference for the test bed region leans toward Jeju due to its substantial number of eligible citizens.
- The CBDC program aims to allow tourists to use digital currency for payments in addition to South Korean residents, fostering financial inclusion.
- The CBDC testing is scheduled for the next year, but technical barriers need to be addressed for successful adoption in real-world scenarios.
- The BoK acknowledges the need for IT experts and a large number of IT personnel to support the CBDC plan and overcome technical challenges.