Today the Bank of Korea (BoK) announced plans for a wholesale central bank digital currency (wholesale CBDC) pilot in conjunction with the Bank for International Settlements (BIS). Key motivations for the Korean wholesale CBDC include acting as a settlement asset for commercial bank tokenized deposits, and exploring the BIS’ Unified Ledger concept.
The central bank previously ran retail CBDC trials but has concluded there is no current need for a retail CBDC, given the efficient payments landscape. However, it will continue to explore technology for an offline CBDC and privacy preserving technologies.
For the Korean wholesale CBDC, the primary driver is to leverage local blockchain prowess for innovative payments and financial services. We’ve reported that asset tokenization is progressing in Korea within a sandbox, and this is a second motivation. Thirdly is the programmability that a tokenized deposit can offer. And finally it’s the first time the BIS will explore its concept of a Unified Ledger in which the CBDC and tokenized assets live on the same network.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
