According to BlockBeats, South Korea's central bank has distributed a formal document to major banks regarding the second phase of testing for its Central Bank Digital Currency (CBDC). A bank official noted that details, including specific methods and timelines, are currently under discussion.
The second phase of testing is considering the distribution of certain government subsidies in digital currency form. The aim is to use the CBDC to restrict the use of subsidies and reduce administrative and management costs associated with their distribution. Previously, the central bank launched a three-month CBDC pilot project in April, involving seven banks, but later suspended it. The pilot faced criticism due to its limited practical application and the significant cost burden it imposed on participating banks.