Bank of Korea to carry out mock test on functionality of digital currency: report

The test will reportedly start in August and run until June 2022.

South Korea’s central bank shared that it plans to carry out a mock test on the functionality of central bank-issued digital currencies (CBDC).

The Bank of Korea (BOK) said it plans to pick an operator of the mock test via bidding to check how CBDC functions in a virtual space, reports Yonhap News Agency.

The test is reportedly expected to start in August and run until June next year.

Through this mock test, the central bank will mainly check whether the CBDC can serve as a currency for settlement and remittance and whether holders of CBDC can use it to buy goods and services.

The BOK also clarified that the planned test does not necessarily mean a step toward the actual issuance of a cryptocurrency, but the bank is making necessary preparations "just in case."