Bank of Korea to test CBDC functionality

Monday 24 May 2021 10:11 CET | News

South Korea’s central bank has announced plans to conduct a mock test on the functionality of a central bank digital currency (CBDC), according to Yahoo Finance.

The main goal of the test is to check whether the CBDC can serve settlement and remittance for the purchase of goods and services. The test will begin in August 2021 and will end in June 2022. The central bank has yet to pick an operator for the pilot but will open the opportunity up to bidders, the online publication added. The bank has alluded to CBDC efforts in the past, though this is the most substantive effort to date.

The Bank of Korea also emphasised that it does not necessarily intend to release a digital currency. The primary purpose of the trial run is only to check the feasibility and effectiveness of a CBDC.

To learn more about CBDCs, download our ebook Central Bank Digital Currencies for Beginners – A Quick Guide into CBDCs.

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Keywords: CBDC, central bank, remittance, settlement, payment processing
Categories: Banking & Fintech | Payments General
Countries: Korea, Democratic People's Republic of
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Banking & Fintech