Korean central bank inks deal to develop system for testing CBDCs

LG CNS Co. will develop a set of systems for the test.

The Bank of Korea (BOK) has inked a $7.4m (KRW9.68b) deal with LG CNS Co. to develop a system for testing the feasibility of central bank digital currency (CBDC).

A report by Yonhap News Agency noted that LG CNS Co. will develop a set of systems for the joint test on CBDC, which will be done by BOK and other financial regulators.

Earlier in October, FSC reportedly shared plans to expand the feasibility test of CBDCs to the realm of transfers and settlement amongst financial institutions, Yonhap reported.