The Bank of Korea is moving to the next phase of testing its digital currency and is looking for consulting partners to implement the second stage of the plan to issue a state-owned cryptocurrency.
According to the publication of the Korea Times, the company chosen by the Bank of Korea will help the Central Bank in creating the architecture of the state cryptocurrency, one of the goals of which is to prevent the dominance of the Chinese digital yuan. Recall that recently, the electronic payment System based on the digital currency of China (DCEP) has entered the testing phase of large commercial transactions and is approaching the official launch.
According to the publication, the first stage of work on the state-owned cryptocurrency of South Korea was completed last month, and the results obtained will serve as the basis for the next phase of the project’s development. The architecture of the state cryptocurrency will present various aspects of the planned system, such as security, data processing method, and possible applications. The launch of the pilot version of the project is planned for the end of 2021.
“The Bank of Korea will team up with a consulting partner to outline a common workflow and architecture for managing the digital currency system,” a South Korean Central Bank official said.
According to him, “concrete action plans” will be developed for the timely delivery of the pilot project. Even if the development reaches certain stages this year, the Bank of Korea does not plan to issue a state-owned cryptocurrency in the near future. The Central Bank is preparing the base for the time when other national currencies will become digital.
At the same time, at the beginning of the year, the Bank of Korea stated that it does not see the need to issue its own cryptocurrency. Despite the popularity of digital currencies in the country, the Central Bank was skeptical about state-owned cryptocurrencies.