The Bank of Korea announced on Feb. 5 that it would form a technical research team to cover central bank digital currencies (CBDCs) and conduct legal and technical examinations on the matter. A number of experts and professionals are expected to join the research team from the private sector.
These days, major central banks around the world are considering allowing the use of CBDCs for the purpose of payment between financial institutions. Until recently, the Bank of Korea focused its related research on the current status of the research by those central banks. Its recent announcement, however, implies that its research can lead to CBDC issuance in the future. Still, the Bank of Korea stressed that it would not issue any CBDC in the near future.
The central bank of South Korea formed a joint task force in January 2018 to conduct research on cryptocurrencies and CBDCs. The joint task force continued for one year and the bank has conducted research on its own since then.