Korean central bank to choose a partner for its CBDC program

on Sep 1, 2020
  • South Korean Bank of Korea is now looking for a partnering firm for CBDC development.
  • After completing phase one of the CBDC pilot program, which was research, the bank is about to progress.
  • The central bank wants a local partner with experience that would guide and assist in the system's creation.

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South Korean central bank, the Bank of Korea (BOK), recently revealed details for a consulting partnership that it now seeks. The partnership comes as a part of the next stage in preparations for the launch of its own CBDC.

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Bank of Korea to take the next step towards CBDC launch

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According to the bank, its ideal desired partner will be a local firm that would be able to help with the creation of the proper architecture for the upcoming coin.

As mentioned, this is part of the second stage in the CBDC’s creation. The first part lasted until July of this year, when the bank finally completed the review process, which acted as the first phase. If all goes as planned, the development might be completed and the coin could see launch by the end of 2021.

However, before that happens, the bank now has the second stage of the project to deal with, which is the creation of the system architecture for the coin.

The CBDC rush continues

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Fortunately, the BOK doesn’t have to start from scratch.

The research that was conducted in the first stage has already delivered recommendations regarding what the architecture should be like. Now, the bank simply needs a consultant partner that will have enough experience to guide it through the process. It will also be expected to help with designing some of the key elements of the system, such as security, data management, applications, and alike.

Korea has been making major moves to make the crypto industry legal, regulated, and to launch its own cryptocurrency. In fact, many of its neighboring countries are doing the same, including Japan and China.

China has recently expanded its testing of digital yuan to new regions and cities, meanwhile confirming that tests currently only include small retail transactions. As for Japan, the country’s central bank formed a 10-member team for working on cryptocurrency issues.