South Korea to invite 100K citizens to test CBDC in 2024

The Bank of Korea (BOK) said it will invite 100,000 South Korean citizens to use deposit tokens to purchase goods as part of its central bank digital currency (CBDC) pilot. The test will begin “around September to October” in 2024 and last three months.

according to According to a report by The Korea Times on November 23, participants will be limited to using CBDC for payments and will not have the option to store, exchange or send to other users. The goal of the pilot phase is to evaluate the feasibility and effectiveness of currency issuance and distribution.

The Bank of Korea will also work with Korea Exchange to integrate its new digital currency into a carbon emissions trading simulation system to test the feasibility of delivery and payment transactions. The newspaper quoted a statement from the Bank of Korea as saying:

“(…) The pilot project will first be carried out in the fourth quarter of 2024. If the bank proposes a new separate project, the possibility of a separate pilot will also be considered.”

The statement by the Bank of Korea comes as Agustin Carstens, general manager of the Bank for International Settlements (BIS), is visiting the South Korean capital, Seoul. Carstens publicly called South Korea’s CBDC project a digital won.

related: IMF chief: CBDC can replace cash and help financial inclusion

The Bank of Korea announced the launch of a CBDC pilot in October. The pilot, testing retail and wholesale CBDCs, will involve private banks and public institutions, while the Bank for International Settlements will provide expert technical support.

BIS is at the forefront of global CBDC adoption. It is helping the Swiss National Bank develop a wholesale CBDC and assisting in the establishment of joint platforms with central monetary authorities in China, Hong Kong, Thailand and the United Arab Emirates.This is also Developing a proof-of-concept for a transaction tracker with the European Central Bank and numerous other projects.