Seoul, Friday, November 8, 2024 – In a significant step forward for central bank digital currencies (CBDC), several major South Korean banks and retailers are collaborating with the Bank of Korea (BOK) in an extensive “real-world” pilot program.
Leading banks such as Kookmin Bank, Shinhan Bank, and Nonghyup Bank, as well as retail giants like 7-Eleven and Kyobo Book Center, have joined the BOK’s efforts to integrate CBDC use across a wide array of daily transactions. This pilot seeks to enhance CBDC adoption for in-person transactions, spanning convenience stores to digital food delivery platforms like Ddangyo.
Governor Lee Chang-yong of the BOK expressed optimism about CBDCs’ potential in facilitating both domestic and cross-border transactions.
This pilot program, which includes approximately 100,000 South Korean citizens, emphasizes testing CBDC functionality in everyday spending, a move that officials hope will increase CBDC viability as a mainstream digital currency.
However, geopolitical factors, especially the outcome of the US presidential election, are adding an element of uncertainty to South Korea’s CBDC aspirations, analysts note.
South Korea’s rapid push into CBDCs comes in response to China’s advancements in its digital yuan, which is gaining traction across Asia and globally.
