<![CDATA[<figure class="image"><img src="https://cimg.co/news/123341/326205/adobestock-602559755-edit.jpeg" alt="The offices of the South Korean central bank in Seoul, South Korea." srcset="https://cimg.co/news/123341/326205/responsive-images/adobestock-602559755-edit___media_library_original_1500_1126.jpeg 1500w, https://cimg.co/news/123341/326205/responsive-images/adobestock-602559755-edit___media_library_original_1200_901.jpeg 1200w, https://cimg.co/news/123341/326205/responsive-images/adobestock-602559755-edit___media_library_original_900_676.jpeg 900w, https://cimg.co/news/123341/326205/responsive-images/adobestock-602559755-edit___media_library_original_720_540.jpeg 720w, https://cimg.co/news/123341/326205/responsive-images/adobestock-602559755-edit___media_library_original_600_450.jpeg 600w, https://cimg.co/news/123341/326205/responsive-images/adobestock-602559755-edit___media_library_original_300_225.jpeg 300w" sizes="100vw" width="1500" class="content-img"><figcaption>Source: VTT Studio/Adobe</figcaption></figure>The <a href="https://cryptonews.com/tags/south-korea/">South Korean</a> central bank, the Bank of Korea (BOK), is set to showcase a &ldquo;blueprint&rdquo; for its <a href="https://cryptonews.com/tags/CBDC">CBDC</a> in September as the nation looks to speed up the progress of its <a href="https://cryptonews.com/news/south-koreas-hana-bank-work-cbdc-stablecoin-alternatives.htm">digital KRW</a>.Per <a href="https://www.fnnews.com/news/202308231805499614" rel="nofollow">Fn News</a> and the <a href="https://byline.network/2023/08/24-263/" rel="nofollow">Byline Network</a>, the BOK has &ldquo;successfully completed&rdquo; a CBDC interoperability-focused pilot, whereby it attempted to link its own prototype digital won platform with commercial banking and e-pay apps.The BOK has been working on this key step of its CBDC development since May, and is now ready to &ldquo;announce plans&rdquo; for CBDC &ldquo;infrastructure construction.&rdquo;The BOK will reportedly make an announcement in this regard in September, and is <a href="https://cryptonews.com/news/south-koreas-hana-bank-work-cbdc-stablecoin-alternatives.htm">working closely with private sector partners</a>.The body has already begun <a href="https://cryptonews.com/news/s-korean-mps-create-law-that-distinguishes-cbdcs-from-crypto-digital-krw-launch-imminent.htm">requesting that the National Assembly pass relevant legislation</a>.The bank also appears to have held talks with the nation&rsquo;s top financial regulators.An official from the Financial Services Commission was quoted as stating:<blockquote>&ldquo;The relevant departments of the Financial Services Commission and the Financial Intelligence Unit are discussing the BOK&rsquo;s CBDC project.&rdquo;</blockquote>The official said the regulators needed to &ldquo;review&rdquo; the BOK&rsquo;s plans to ensure &ldquo;there are no conflicts [of interest].&rdquo;And the regulator added that the &ldquo;discussion on establishing a legal framework&rdquo; for the digital KRW would &ldquo;depend on what the Bank of Korea&rsquo;s CBDC model looks like, and what laws and regulations can be applied to it.&rdquo;<h2 id="south-korean-central-bank-forges-ahead-with-cbdc-plans">South Korean Central Bank Forges Ahead with CBDC Plans</h2>The bank still needs to convince lawmakers to grant it the legal right to hold &ldquo;digital assets.&rdquo;But there has been pushback to the BOK&rsquo;s plans.During the coronavirus pandemic, the government unveiled plans to create &ldquo;contact-free&rdquo; payment channels, with a CBDC touted as a tool that could help achieve this.This has led to initiatives including &ldquo;cashless buses&rdquo; in Seoul.The South Korean capital began piloting cash-free buses in October 2021, removing cash payment options on 171 buses.This pilot has since been expanded, with other cities also debuting &ldquo;cashless buses.&rdquo;But these plans have drawn a &ldquo;public backlash&rdquo; from certain sectors, media outlets reported earlier this year.<figure class="media"><oembed url="https://twitter.com/koreatimescokr/status/1636610235489222656"></oembed></figure>Lawmakers and politicians have also spoken about their desire to create a &ldquo;cashless&rdquo; society, but some critics have claimed that this would place too much power in the hands of the BOK.Although the BOK initially claimed that it would not launch a CBDC due to the fact that so many e-pay solutions already exist in South Korea, events of the past few years appear to have caused it to <a href="https://cryptonews.com/exclusives/is-south-korea-s-central-bank-set-to-make-a-digital-fiat-u-t-5427.htm">make a U-turn</a>.<figure class="media"><oembed url="https://twitter.com/CNBCi/status/1694605464703783292"></oembed></figure>The coronavirus pandemic drove initial discussions, but the rapid pace of China&rsquo;s digital yuan pilot may have forced Seoul&rsquo;s hand.The Bank of Japan has also been <a href="https://cryptonews.com/news/japanese-digital-yen-pilot-begin-in-early-2023.htm">pushing ahead with its own digital yen project</a>.Seoul is unaccustomed to losing tech races with Beijing, and &ndash; like Tokyo &ndash; directly funds private-sector IT R&amp;D efforts.With some 90+ nations already stating that they have looked into the possibility of launching a CBDC, the BOK wants to ensure it is not left behind &ndash; and is in the position to fast-track a digital won launch.
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South Korean Central Bank Set to Unveil CBDC ‘Blueprint’ Next Month

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