Major South Korean Banks Join CBDC Pilot

The central bank’s CBDC pilot, which is rapidly expanding, has attracted the participation of numerous prominent South Korean banks and retail titans.

According to a report by Chosun Ilbo, the Financial Services Commission and the Bank of Korea (BOK) have announced that seven institutions will take part in the pilot program.

South Korean banks: Are they interested in the CBDC?

Kookmin Bank (KB), Shinhan Bank, Woori Bank, KEB Hana Bank, the Industrial Bank of Korea (IBK), and Nonghyup Bank (NH) comprise the list of high-street institutions. BNK Busan Bank, a significant regional bank, also participated in the pilot.

KB will facilitate CBDC payments at 7-Eleven branches. Additionally, it will enable CBDC token holders to utilize their currencies at Kyobo, the largest bookstore in the country.

On the other hand, Shinhan will enable CBDC users to utilize central bank digital currency to make payments on its food delivery application, Ddangyo.

Additionally, clients of the bank who possess CBDCs will have the opportunity to utilize their tokens at Hanaro Mart, a supermarket chain that the bank operates.

“We will discover new currency possibilities with the CBDC. It has a lot of potential, especially in the sphere of cross-border transactions.”Lee Chang-yong, BOK Governor

Fears Regarding CBDCs: Does Trump Have Any?

According to the media outlet, the BOK and other stakeholders are apprehensive that the fate of CBDCs could be jeopardized if former President Donald Trump were to secure the presidency in the United States on November 5.

Trump has adopted a “pro-Bitcoin, anti-CBDC” stance. Chosun elaborated that this could potentially terminate Seoul-Washington collaboration initiatives in the CBDC sector.

As Seoul endeavors to regain the ground it has lost to China’s digital yuan, thousands of South Koreans have commenced piloting the BOK’s CBDC this year.

Many South Korean banks are currently in the process of developing their own CBDC platforms. They are eager to implement them.

An unnamed “insider” in the cryptocurrency sector informed the news outlet:

“Unlike the conservatives in the US, some countries – such as China – have a positive stance on CBDCs. They think they can help control the financial markets and prevent the flow of capital to overseas destinations. After the US presidential election, a new era of financial competition between CBDC and virtual assets will begin to intensify.”

The BOK declared its intention to “accelerate” the CBDC initiative in April of this year. Additionally, it declared its intention to test the digital KRW with 100,000 citizens.