The Bank of Korea has completed the second phase of the CBDC simulation experiment research

According to Yonhap News Agency, the Bank of Korea (BOK) announced that it has successfully completed the CBDC simulation experiment research project that will be carried out in two phases starting in August 2021, including the realization of CBDC interest payment and redemption, freezing and collection, cross-border remittance, etc. A variety of policy support and payment service experiments. In the first phase of the experiment, BOK created a CBDC simulation environment based on distributed ledger technology on the cloud from August to December last year, and then tested basic functions such as manufacturing, issuance, circulation, and redemption. In the second phase of the experiment, BOK tested the possibility of implementing extended functions such as offline transactions, digital asset transactions, and policy support tasks, and also tested the application of new technologies such as "zero-knowledge proof technology" (ZKP) and distributed ledger expansion technology To enhance the possibility of personal information protection. The Bank of Korea announced that even after the research project is completed, it will conduct additional experiments with 4 banks and 15 institutions, including the Korea Financial Telecommunications and Clearing Research Institute, to more closely examine established CBDC simulations System functionality and performance.