South Korea's CBDC Pilot to Take Place in Jeju, Busan, or Incheon, Excluding Seoul
The central Bank of Korea (BOK) has narrowed down the choices for its central bank digital currency (CBDC) pilot venue to three regions. Notably, the nation's capital Seoul is not among these.
The major regions chosen as candidates are Jeju, Busan, and Incheon, according to IT Chosun.
Eventually, the bank will choose one of the three. It will then secure franchises that can accept CBDC payments and will start experimenting with payments and distribution at a public level.
The private test is scheduled for next year. The BOK will select the pilot site after considering the expected number of users and the effect on the local economy.
An official from a commercial bank said that,
"In the case of Busan, the number of eligible citizens is so large that the Bank of Korea is burdened in many ways, so the opinion was greatly inclined to Jeju, which has the next largest population."
The bank official argued that the CBDC electronic wallet app will allow local residents, as well as tourists, to join the project.
"We are in contact with distribution companies such as large marts," they said.
An official from the BOK stated that "the customer test is being well prepared without interruption."
The regional CBDC tests will be similar to the issuance and distribution of the local currencies in South Korea, said the report.
Local currencies are issued by local governments and their usage is geographically restricted.
Jeju, Busan, and Incheon are currently issuing 'Tamnaneunjeon' (operated by Jeju Bank), 'Dongbaekjeon' (operated by Busan Bank), and 'Incheon e-Eum' (operated by a consortium of Kona I and Nonghyup Bank), respectively.
However, the report noted, unlike these alternative currencies, CBDC still has many major technical barriers to
Read more on cryptonews.com
