{"id":2203163,"date":"2023-12-19T08:00:50","date_gmt":"2023-12-18T23:00:50","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203163"},"modified":"2023-12-18T15:53:49","modified_gmt":"2023-12-18T06:53:49","slug":"boks-digital-currency-experiment-reflects-global-trend-faces-challenges","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/","title":{"rendered":"BOK\u2019s digital currency experiment reflects global trend, faces challenges"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Bank of Korea (BOK) has finalized a $7.4-million (9.68 billion won) agreement with LG CNS Company to develop systems for <\/span><a href=\"https:\/\/www.bok.or.kr\/portal\/bbs\/P0000559\/view.do?nttId=10081177&amp;menuNo=200690\"><span style=\"font-weight: 400;\">testing the feasibility of a central bank digital currency<\/span><\/a><span style=\"font-weight: 400;\"> (CBDC). This initiative is part of South Korea\u2019s ongoing exploration of a digital currency system, focusing on the potential use of CBDC in transactions and settlements among financial institutions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The BOK <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20231004004900320\"><span style=\"font-weight: 400;\">began<\/span><\/a><span style=\"font-weight: 400;\"> mock tests of the CBDC in Aug. 2021, primarily for transactions between financial institutions. The extended feasibility test, expected to conclude by the end of next year, will explore the digital currency\u2019s infrastructure support for the digital economy and its impact on the financial system and economy.<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The BOK\u2019s contract with LG CNS Company to develop a CBDC system is consistent with a <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/c\/central-bank-digital-currency-cbdc.asp\"><span style=\"font-weight: 400;\">global trend<\/span><\/a><span style=\"font-weight: 400;\"> among central banks in researching the application of digital currencies. This initiative aims to harness the efficiency and security benefits of blockchain technology. By exploring the use of CBDCs in transactions among financial institutions, the BOK is positioning itself to potentially enhance transaction speed and reduce costs in the financial sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, this venture also carries inherent risks, including issues related to privacy, cybersecurity and the impact on monetary policy and financial stability. For instance, it is unknown if the use of CBDCs will allow the central bank to carry sufficient liquidity to facilitate withdrawals during a financial crisis. The BOK\u2019s experiment with CBDC will test not only the technological capabilities but also the regulatory and economic implications of adopting digital currency in a well-established financial ecosystem.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The Bank of Korea (BOK) has finalized a $7.4-million (9.68 billion won) agreement with LG CNS Company to develop systems for testing the feasibility of a central bank digital currency (CBDC). This initiative is part of South Korea\u2019s ongoing exploration of a digital currency system, focusing on the potential use of CBDC in transactions and [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2203164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2203163","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>BOK\u2019s digital currency experiment reflects global trend, faces challenges - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BOK\u2019s digital currency experiment reflects global trend, faces challenges - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"The Bank of Korea (BOK) has finalized a $7.4-million (9.68 billion won) agreement with LG CNS Company to develop systems for testing the feasibility of a central bank digital currency (CBDC). This initiative is part of South Korea\u2019s ongoing exploration of a digital currency system, focusing on the potential use of CBDC in transactions and [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-18T23:00:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-18T06:53:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2023\/12\/eb-11.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"548\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"BOK\u2019s digital currency experiment reflects global trend, faces challenges\",\"datePublished\":\"2023-12-18T23:00:50+00:00\",\"dateModified\":\"2023-12-18T06:53:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\"},\"wordCount\":269,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/12\/eb-11.png\",\"keywords\":[\"Business &amp; Economy\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\",\"url\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\",\"name\":\"BOK\u2019s digital currency experiment reflects global trend, faces challenges - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/12\/eb-11.png\",\"datePublished\":\"2023-12-18T23:00:50+00:00\",\"dateModified\":\"2023-12-18T06:53:49+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/12\/eb-11.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/12\/eb-11.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2023\/12\/boks-digital-currency-experiment-reflects-global-trend-faces-challenges\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"BOK\u2019s digital currency experiment reflects global trend, faces challenges\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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