In 2023, innovation in payment and settlement systems continued apace as further progress was made in the convergence of finance and IT. The turmoil at Silicon Valley Bank in the U.S. sparked concerns about potential digital bank runs on domestic institutions, highlighting the need to shore up the safety of payment and settlement systems. In the international community, amid active discussions about the introduction of central bank digital currencies (CBDCs), final recommendations for the regulation of global stablecoin arrangements were issued. Efforts to enhance the efficiency of payment and settlement infrastructure were also stepped up, with central banks and international organizations leading the charge. 

In the face of the evolving payment and settlement landscape, the BOK further bolstered its efforts to augment the safety and efficiency of domestic systems by improving their operation, strengthening oversight, and spearheading innovation. In 2023, amid an increase in value settled in major payment and settlement systems, driven by securities and foreign exchange settlement systems, related risks were managed and addressed appropriately. The net settlement collateral ratio was gradually raised by taking into consideration market conditions. Preemptive measures were taken in anticipation of potential digital bank runs. Meanwhile, the launch of Common QR code-based ATM cash deposits and withdrawals has made it possible for the public to conveniently access and manage cash using a smartphone app. The BOK conducted active oversight of payment and settlement systems and financial institutions by assessing Key Payment and Settlement Systems(KPSS) and carrying out joint examinations of financial companies. Concerning a central bank digital currency (CBDC), a pilot test plan was established and technical research and institutional infrastructure development projects were undertaken. Efforts to enhance the payment and settlement infrastructure were made on multiple fronts, including the implementation of a real time gross settlement (RTGS)- based fast payment system and the introduction of the international financial messaging standard ISO 20022. 

Going forward, the BOK will expand the scope of Common QR code-based ATM services and broaden the oversight of payment and settlement systems by diversifying methods for their assessment, monitoring payment services provided by Big Tech, and participating in discussions about the regulation and supervision of stablecoins. Further progress will be made in the ongoing projects to implement an RTGS-based fast payment system and introduce ISO 20022 to BOK-Wire+. Finally, the BOK plans to thoroughly carry out the CBDC pilot test and take an active part in discussions about innovation in payment and settlement systems led by major central banks and international organizations.