Korea’s Central Bank Completes First Phase of CBDC Simulation Test Run

The CBDC project has now moved into its second phase where various additional functions including offline payments will be tested

article-image

Bank of Korea building in Seoul. Credit: Shutterstock

share

key takeaways

  • South Korea’s central bank is now in the second phase of testing its CBDC following a successful test which began in December
  • The basic functions of the bank’s CBDC are “operating normally” under the rigors of a cloud testing environment

The Bank of Korea said Monday the first phase of its central bank digital currency (CBDC) simulation research project, which began in December, had concluded and was now in its second testing phase.

“The basic functions of [the] CBDC … are operating normally,” the central bank said in a statement. The first phase saw the creation of a simulated environment implemented in the cloud where tests were conducted to determine the veracity of the CBDC’s basic functions including manufacturing, issuance and distribution.

The project has now moved into its second phase where various additional functions including offline payments and “personal information protection enhancement technology” will be tested for the possibility of implementation and application, the bank said.

Read also: Fed Opens Debate on CBDC, Takes No Policy Stance

Once the second phase of the project is concluded in June of this year, the bank said it plans to expand CBDC usability experiments and technology verification in cooperation with financial institutions, bringing it one step closer to a live product.

While the experiment is by no means an endorsement that the bank will pursue and introduce a wholesale CBDC into its national economy, it does echo similar tests being conducted by financial institutions worldwide.

Over 40 countries are currently researching either wholesale or retail CBDCs while an additional 16 are in current development. Another 14 are currently in the pilot stage while nine nations, including The Bahamas and Nigeria, have launched a hybrid version.

Meanwhile, in the US, The Bank of America has said a digital dollar issuance would likely hit the world stage sometime around 2025-2030, calling it “inevitable,” according to a report by Bloomberg on Monday.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability