Get a demoExplore data

Korea’s Central Bank Completes First Phase of CBDC Simulation Test Run

The CBDC project has now moved into its second phase where various additional functions including offline payments will be tested

article-image

Bank of Korea building in Seoul. Credit: Shutterstock

share
  • South Korea’s central bank is now in the second phase of testing its CBDC following a successful test which began in December
  • The basic functions of the bank’s CBDC are “operating normally” under the rigors of a cloud testing environment

The Bank of Korea said Monday the first phase of its central bank digital currency (CBDC) simulation research project, which began in December, had concluded and was now in its second testing phase.

“The basic functions of [the] CBDC … are operating normally,” the central bank said in a statement. The first phase saw the creation of a simulated environment implemented in the cloud where tests were conducted to determine the veracity of the CBDC’s basic functions including manufacturing, issuance and distribution.

The project has now moved into its second phase where various additional functions including offline payments and “personal information protection enhancement technology” will be tested for the possibility of implementation and application, the bank said.

Read also: Fed Opens Debate on CBDC, Takes No Policy Stance

Once the second phase of the project is concluded in June of this year, the bank said it plans to expand CBDC usability experiments and technology verification in cooperation with financial institutions, bringing it one step closer to a live product.

While the experiment is by no means an endorsement that the bank will pursue and introduce a wholesale CBDC into its national economy, it does echo similar tests being conducted by financial institutions worldwide.

Over 40 countries are currently researching either wholesale or retail CBDCs while an additional 16 are in current development. Another 14 are currently in the pilot stage while nine nations, including The Bahamas and Nigeria, have launched a hybrid version.

Meanwhile, in the US, The Bank of America has said a digital dollar issuance would likely hit the world stage sometime around 2025-2030, calling it “inevitable,” according to a report by Bloomberg on Monday.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Marina Bay Sands Singapore

October 7, 2026

DAS Asia is a a single-day summit at Marina Bay Sands Singapore featuring conversations between the builders, investors, and global leaders are shaping the trajectory of the digital asset ecosystem in Asia & North America.

Hilton Park Lane, London

November 10-11, 2026

DAS London is a two-day summit at the Hilton Park Lane in London featuring conversations between the builders, allocators, and policy makers who are shaping the trajectory of the digital asset ecosystem in the UK, Europe, and North America.

Javits North

March 30-April 1, 2027

DAS NYC is a three-day summit at Javits North bringing together the builders, allocators, and policymakers shaping the future of digital assets across institutional finance and global markets.

recent research

Sponsored Article Template - DoubleZero White.png

Research

Every distributed system inherits the physical limitations, or advantages, of the network it runs on. Physics-bound systems can optimize their execution layers, compress their state, and parallelize their runtime, and still lose time they cannot recover to the speed of light through fiber and the routing decisions of carriers that are not optimized for consensus. The public internet routes traffic by least cost, not best performance. For a system where the order and timing of messages determine who earns and who loses, that is a structural tax and a measurable networking design flaw for traders.

The daily brief, in your inbox

Markets, protocols, and policy, read by 200K+ professionals.

Blockworks Inc.133 W 19th St., New York, NY 10011

Solutions

InvestorsExchangesEnterprisesOnchain Businesses

© 2026 Blockworks Inc.

TermsPrivacy PolicyPrivacy CenterNews Archive