[Exclusive] CBDC Real Transaction Test to Begin Early Next Year [Digital Won Is Coming] ①

Scheduled for implementation after beta testing early next year, coinciding with the timing of some bank system upgrades

The Central Bank Digital Currency (CBDC) real transaction test is expected to be fully implemented starting early next year. Although it was originally scheduled for December this year, the timing was adjusted for safety reasons as it coincided with the system overhaul period of the banks participating in the test.

According to the financial sector on the 21st, the CBDC real transaction test, which was planned to be conducted in December with 100,000 general public participants along with the Bank of Korea, the Financial Services Commission, the Financial Supervisory Service, and commercial banks, has been postponed to early next year due to the banks' own system overhaul. The digital won real transaction test will proceed after a beta test following security checks once the banks complete their system upgrades.

CBDC refers to central bank money issued in electronic form. It costs less to issue than cash and can enhance convenience and transparency, which is why major countries, including Korea, are actively researching it.

Korea began serious research and experiments centered on the Bank of Korea in 2020. The CBDC real transaction test is part of the "CBDC usability test" jointly promoted by the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service at the end of last November. When banks issue deposit tokens with digital voucher functions applied, general participants use these tokens to purchase goods, and payments are made to the merchants. This test experiments whether deposit tokens based on CBDC can be used in actual commerce.

The banks participating in the real transaction test will be finalized through the Financial Services Commission between late October and early November after going through the financial regulatory sandbox procedure. Since building the related infrastructure requires considerable time and cost, it is known that major domestic banks with extensive experience in virtual asset custody will participate in the test. Once the issuance of deposit tokens by banks is permitted through the financial regulatory sandbox, participating banks will proceed with recruiting individuals and stores to participate in the test.

However, since some banks are currently pursuing their own system overhauls, the start of the real transaction test is expected to be delayed beyond the initially anticipated schedule. According to the financial sector, some banks have recently been busy introducing post-next-generation systems within their organizations.

Earlier, on the 14th, Rep. Cheon Haram of the Reform Party stated at the Bank of Korea’s audit, “The regulatory sandbox procedure should have been completed by September, but the application was submitted at the end of September, and there are reports that some participating banks have not even started system development yet,” adding, “Since this is a very important system-related issue, I hope the approach will be cautious, thoroughly checking reliability, safety, and personal information protection.” In response, Bank of Korea Governor Lee Chang-yong said, “I will keep that in mind.”