South Korea Reduces the List of Candidate Cities for Launch of its CBDC
South Korea is beginning a pilot program for its CBDC (Central Bank Digital Currency) in either Jeju, Busan, or Incheon, but not in the nation’s capital, Seoul.
The Bank of Korea is seeking to analyze payments computed at state-level as well as to pick the franchises to accept the digital currency.
A Central Bank representative stated that the CBDC e-wallet application will be available to both local citizens and visitors.
These local closed tests are said to be comparable to the fiat won alternatives scheme. The aforementioned cities already have their own general-use currencies such as Tamranjeong, Dongbaekjeon, and Incheon e-Eum, which were introduced during the COVID-19 pandemic in order to provide basic income benefits and social aid to people.
The local currency scheme results in fewer “technical constraints” compared to a CBDC, according to the article.
In July 2023, South Korean banks Hana Bank and Woori Bank studied what is known as certificate of deposit tokens as an alternative to either CBDCs and stablecoins. The regulator also reported its continued preparations for the upcoming potential launch of the digital won.
