The Bank of Korea will conduct a pilot test of the central bank's digital currency

The Bank of Korea said it is seeking partners through an open tender to set up a pilot platform for digital currencies to study the feasibility of launching a central Bank digital currency (CBDC) in a test environment.

The tests, which will include simulations of commercial banks and retail outlets, are expected to start in August and run until June next year. The BOK will mainly examine whether the central bank's digital currency can be used as a currency for settlement and remittances, as well as mobile payments and whether holders can use it to buy goods and services. A Bank of Korea official said the move was aimed at preparing for rapid changes in the payment and settlement system.

Central banks from China to Europe to South Korea are now considering developing digital currencies to fend off threats from cryptocurrencies and to find solutions for efficient cross-border payments.