The Bank of Korea has completed the second stage CBDC simulation experiment to realize functions such as interest payment and cross-border remittance

BlockBeats News, November 7, according to Yonhap News Agency, the Bank of Korea (BOK) announced the completion of the CBDC simulation pilot study, which began in August 2021 in two phases. Various policy supports and payment service experiments of Central bank digital currency (CBDC), such as interest payment and exchange, freezing and collection, inter-state remittance, etc. In the first phase of the experiment, BOK created a simulation environment for CBDC based on distributed ledger technology in the cloud from August to December last year, and then tested basic functions such as manufacturing, issuing, distributing, and redeeming. In the second phase of the experiment, BOK tested the possibility of implementing extended capabilities such as offline transactions, digital asset transactions, policy support tasks, and the possibility of applying new technologies such as "Proof of Zero Knowledge" (ZKP) and distributed ledger extension to enhance the protection of personal information. The central bank announced that even after the research project is completed, it will conduct additional experiments in cooperation with four banks and 15 institutions, including the Korea Institute of Financial Telecommunications and Clearing, to more closely examine the functions and performance of the already established CBDC simulation system.