Korean banks explore ways to embrace digital currency

2024. 10. 31. 10:52
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Kim Byung-hwan, Chairman of the Financial Services Commission, holds a press briefing at the Government Complex Seoul in Jongno District on the 30th. (Yonhap)
South Korea’s banking sector will engage in electronic payment businesses utilizing the Bank of Korea’s digital currency.

The Financial Services Commission (FSC) announced on Wednesday that it recently selected seven banks to join a pilot project that seeks to prove the worth of Central Bank Digital Currency as an alternative to cash.

Starting next year, the banks can issue CBDC tokens and allow customers to save them in their mobile apps.

Customers can make payments using the CBDC-based deposits in a range of retailers. Seven banks include KB Kookmin Bank, Shinhan Bank, and Nonghyup Bank Co.

KB Kookmin Bank is in talks with retailers, including 7-Eleven, Inc. and Kyobo Book Centre, to accept its deposit tokens. Nonghyup Bank plans to cooperate with Nonghyup Hanaro Mart, one of its retail networks.

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