Following South China's lead, the South Korean central bank has launched its pilot project to develop a digital currency. A cryptocurrency in the making South Korea does not intend to sit on the sidelines for the issue of a CBDC. The country has announced plans to officially launch its pilot project to test the necessary technologies and legal provisions to create and circulate a national cryptocurrency.

The South Korean central bank is speeding up research on its cryptocurrency “Technological innovation in the payment services sector is currently taking place at a rapid pace… the BOK (the central bank of Korea) is seeking to set up a pilot system of CBDC in order to take preventive measures against changes in the 'environment', he added. However, the country would not be ready to adopt a national cryptocurrency anytime soon as demand for cash still exists and the payment services market remains "very competitive". A competitive market States are currently stepping up digital currency initiatives from central banks.

Aware that several countries have already embarked on the race for cryptocurrencies, South Korea intends to catch up with its pilot of digital currencies. "The United States and Japan had no plans to issue a CBDC in the near future, but have recently changed their position to improve research in this emerging area," said a central bank official at the South Korea. Meanwhile, the Bank for International Settlements (BIS) is actively exploring the design of an international cryptocurrency that requires no physical contact to limit the spread of the Coronavirus.