South Korea’s central bank is reportedly making progress with its national digital currency plans, with its latest initiative to search for a tech partner to jointly work on a pilot platform for the digital won. 

Specifically, The Bank of Korea reportedly disclosed its details of a bidding process, to select a technology supplier, to assist in deep-diving into the practical effects of rolling out a central bank digital currency in a test environment.

The BoK reportedly revealed that this most recent development was carried out to answer to the rapid changes displayed in the international financial network. 

“The share of cash transactions is decreasing significantly. The steps we are taking now are to prepare for the changes in the payment settlement system, changing rapidly”. The BoK reportedly remarked. 

Per the report, the BoK’s pilot CBDC platform will reportedly come with simulations of commercial banks and retail outlets, test payments via mobile phones, fund transfers, and deposits. This trial program is slated to be operational throughout a four-month period this year (August – December), with a possible extension to 2022. 

The Bank of Korea reportedly finalized the publishing of a book related to CBDC in February 2021 and revealed plans to put the distribution of a digital won to the test, as well as consolidating the legal-associated hardships that come with a state digital currency. 

In March, top-tier South Korea-based commercial bank Shinhan Bank reportedly worked on a blockchain-powered pilot platform, dedicated to a CBDC, in collaboration with LG Corporation’s IT services division – LG CNS. The bank expressed good intention in teaming up with the BoK on building a national digital currency.