He mentioned this in the written Q&A data on major issues. Regarding the status of CBDC research, Governor Lee said, “We have been conducting CBDC pilot system consulting since November of last year, and we plan to build and test the CBDC pilot system from the second half of this year.” He explained that through this test, he plans to check whether the system works properly at each stage, such as issuance, distribution, and redemption, along with functions such as transfer of funds and payment.
He answered that CBDC research needs to be continuously promoted regardless of whether it is introduced or not, and that it is to prepare for changes in the payment settlement environment in the future. In addition, Lee added, “We plan to continue to develop and test follow-up technologies based on the analysis of this year’s test results even after next year.”
Regarding the issuance of CBDC, he replied, “Before issuance, technical requirements must be thoroughly checked, while in-depth review of the impact on the financial system during issuance is necessary.”
He said that for cryptocurrencies such as bitcoin, “I think there are limitations in functioning as a means of payment and value storage due to high price volatility.” In addition, he said, “If the central bank digital currency is introduced in the future, the demand for cryptocurrency as a payment method is expected to decrease.”
Governor Lee said in a major business report conducted by the National Assembly’s Planning and Finance Committee last month that “virtual assets are expected to show high price volatility because they have no intrinsic value.”