South Korea might be moving faster towards adopting a central bank digital currency, or CBDC.
The Bank of Korea released its “BOK 2030” report on Tuesday. The report, which marks the 70th anniversary of the bank’s founding, lays out the institution’s direction and goals over the next 10 years.
One of the bank’s goals as laid out in the report is digital innovation. To do this, the bank will create this year a new office of digital innovation and strengthen its research using blockchain, big data and AI.
The bank has also named its assistant vice governor as its Chief Digital Strategy Office, or CDSO, to overseas activities to support core research activities.
The report said the bank would conduct in-depth research to use new research techniques that use AI, big data and blockchain. It said the bank would quickly adopt the latest digital infrastructure to promote productivity across all the bank’s duties.
It also said it would establish research organizations using the latest techniques, including blockchain, and promote collaboration with outside organizations. Based on the research results, the bank will improve its economic forecasting and statistics, system risk monitoring, analysis and payment system.
The BOK also noted that some central banks are pushing the adoption of CBDCs. It said the bank needs to respond more actively to the spreading use of fintech, digital currency and payment apps.
The bank said it would consider the technological and legal requirements of CBDC and actively carry out relevant research. It also said it would push preparations to adopt CBDCs in Korea if necessary, based on its research and developments in other major countries.
The BOK is currently preparing a CBDC pilot test that will run through the end of next year.