South Korea is set to conduct a digital currency experiment as early as this year, converting bank deposits into tokenized digital assets for payments at superstores and convenience stores, according to reports on Sept. 19.
The Bank of Korea, along with six major commercial and online banks, is preparing a central bank digital currency (CBDC) usability test targeted for December. A recent meeting at the Korea Federation of Banks (KFB) confirmed that 100,000 citizens will participate in this pilot.
The test aims to assess if CBDC, based on distributed ledger technology, can effectively replace the traditional system of transactions and settlements using central bank deposits.
Participating banks are selecting appropriate outlets for the deposit tokens. NH Nonghyup Bank plans to include Nonghyup Hanaro Mart, while other banks are in discussions with major convenience store chains.
