🇰🇷 South Korea Advances CBDC Plans: Phase 2 Testing Confirmed

South Korea’s central bank has officially circulated documents to major banks, confirming the launch of a second phase of CBDC testing.

🔹 Focus of Phase 2:

Exploring the distribution of government subsidies via digital currency to restrict misuse and cut administrative costs.

🔹 Backstory:

An earlier 3-month pilot (April 2024) was paused after criticism over high costs and limited real-world use. Now, the BOK is refining its approach.

📌 What This Means for Crypto:

· Growing state-level validation of digital currency infrastructure.

· Potential long-term reduction in cash usage, boosting digital payment adoption.

· Innovations in programmable money could influence DeFi and stablecoin developments.

⚠️ Watch For:

Timeline and pilot banks’ involvement—key signals of how serious Seoul is about a digital won.

#CBDC #SouthKorea #DigitalWon #Blockchain #Fintech

State-backed digital currencies are no longer theory—they’re entering the build phase. 🏦💡