The Bank of Korea, alongside nine commercial banks, has officially commenced the second phase of its digital currency pilot program, focusing on the digital won. This phase primarily centers on testing payment infrastructure, with decisions regarding subsequent steps still under deliberation.
The progression of this pilot runs parallel to ongoing policy and industry discussions. A broader rollout timeline will be determined following these discussions and a comprehensive risk assessment.
Why This Matters: Stability, Banking Costs, and Policy Clarity
A senior official from the Bank of Korea has acknowledged the cost pressures and regulatory uncertainties surrounding the second phase of the pilot. Rhee Sang-dae, Deputy Governor of the Bank of Korea, stated, "Phase two will require significant investment." He added that the final timeline would be determined after further discussions with banks and regulators. Against this backdrop, the central bank has emphasized the importance of payment system security and regulatory transparency.
Direct Impact on Banks, Merchants, and Won-Based Stablecoins
Policy Outlook and Participation Details
- Progress of the stablecoin bill in the National Assembly
- Roles of participating banks and cost-sharing arrangements are under discussion
Discussions are ongoing between the central bank and the participating banks regarding the division of infrastructure responsibilities and operational costs. The outcomes of these discussions could influence the extent of bank involvement and the path toward future commercialization.
Frequently Asked Questions About the Bank of Korea's Digital Won
Which nine banks are participating in phase two, and what will their roles be?
Nine banks are involved in the pilot, though specific institutions have not yet been disclosed in reports. Their roles are primarily focused on testing the infrastructure in phase two, with specific tasks currently being finalized.
How will costs and infrastructure responsibilities be shared between the Bank of Korea and participating banks?
Cost-sharing is still under discussion. Banks have pointed to the significant burden from the first phase, while Bank of Korea leadership has indicated that further discussions will determine responsibilities and timelines.