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South Korea pilots central bank digital currency testing

South Korean authorities announced a pilot test for a central bank digital currency (CBDC) set to commence in the fourth quarter of next year. The Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service jointly revealed this initiative, targeting both institutions and individuals. The pilot for the wholesale CBDC will start this month and run tentatively until the end of 2024, focusing on commercial banks for interbank fund transfers. A subsequent test for retail CBDC, allowing public access on a limited scale, is slated for next year's fourth quarter. While the CBDC could revolutionise financial digital transition and enhance fiscal policy, its introduction doesn't confirm South Korea's commitment to adopting this payment method. Moreover, the Bank for International Settlements has offered guidance, marking its first involvement in any country's CBDC pilot.


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