BOK to test digital voucher to replace paper and plastic card vouchers

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BOK to test digital voucher to replace paper and plastic card vouchers

Published: 06 Nov. 2024, 19:06

Financial Services Commission Vice Chairman Kim So-young, center, speaks during a press conference held on central bank digital currency project at the Bank of Korea office in central Seoul on Wednesday. [JOINT PRESS CORPS]

Korea's central bank said Wednesday it will test the feasibility of a digital voucher based on a tokenized deposit as part of its trial to introduce a wholesale central bank digital currency (CBDC).

Along with the Financial Services Commission, the Ministry of Science and ICT and the Bank of Korea will test the feasibility of a tokenized deposit-based voucher program for use on smartphones via a digital voucher management platform, which can be available for culture, education and other purposes.

Currently, most vouchers are offered on paper and plastic cards. According to the BOK, a digital voucher based on tokenized bank money will make settlements and necessary processes easier and faster.

Since August 2021, the BOK has been carrying out a mock test of a CBDC for interfinancial institution transactions.

Last year, the central bank, the FSC and the Financial Supervisory Service agreed to expand the feasibility test to the realm of transfers and settlements among financial institutions based on a tokenized bank deposit.

They also have been working on the feasibility test of a CBDC as a means of settlement among customers.

Yonhap