This was the result of a ten-month experiment conducted by the BOK.
South Korea’s central bank, The Bank of Korea (BOK), has dabbled in NFTs by reportedly buying the tokens with its central bank digital currency (CBDC). Over the past ten months, the simulation and research project was carried out, creating a simulated environment for its digital South Korean won using distributed ledger technology (DLT), which Governor Chang Yong Rhee revealed in a speech in September.
Using the digital won, the project tested the usual functions needed for a digital currency, including transacting, issuing, and remittances, and along with it, the project also explored the process of buying NFTs with its CBDC. Readers may note that major countries have experimented with their digital currencies.
“In particular, the Bank of Korea has recently completed its first experiment, which lasted for ten months on a retail CBDC based on distributed ledger technology (DLT). We are now working on a follow-up experiment linking our test system to those of commercial banks and also reviewing additional design options for a CBDC”, said Rhee. South Korea has already started providing its citizens with blockchain-powered IDs that could be used in a wide array of services.