Bank of Korea Shortlists Jeju, Busan, and Incheon for CBDC Testing

The Bank of Korea Shortlists Three Regions for CBDC Testing

The Bank of Korea has announced its shortlisted regions for potential central bank digital currency (CBDC) testing next year, excluding the country’s capital, Seoul. The chosen regions are Jeju, Busan, and Incheon. The CBDC pilot will involve collaborating with commercial banks to test the public distribution process and the use of the CBDC for payments. Jeju is the frontrunner, as it has the next largest population after Busan. The testing will follow a similar structure to the issuance and distribution of local currencies introduced during the pandemic. The CBDC electronic wallet will be accessible to residents and tourists, with distribution partnerships being established with large supermarkets.

1. Jeju, Busan, and Incheon have been shortlisted for CBDC testing.
2. Jeju has the highest chances of becoming the pilot site due to its population size.
3. The CBDC testing will resemble the structure of local currencies introduced during the pandemic.
4. The CBDC electronic wallet will be available to residents and tourists.
5. The Bank of Korea faces technical barriers and the need for a large number of IT personnel for the CBDC launch.

Hot Take: Jeju Poised to Lead the Way in South Korea’s CBDC Testing

The Bank of Korea’s decision to shortlist Jeju, Busan, and Incheon for CBDC testing indicates a significant step towards the launch of a central bank digital currency in South Korea. Jeju’s population size and existing local currency issuance make it the frontrunner for becoming the CBDC pilot site. However, the Bank of Korea must overcome technical barriers and address the need for a large number of IT personnel. The successful implementation of a CBDC in South Korea could pave the way for wider adoption and innovation in the cryptocurrency space.