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The Bank of Korea (BOK) will pick an operator via bidding to conduct a mock test on the functionality of a central bank-issued digital currency (CBDC).
The test will be conducted from August and until June next year.
The BOK will determine whether the CBDC can be used for settlement, remittance, and buying goods and services.
It began reviewing legal and technological issues in the use of such currency under its three-step scheme in March last year.
The BOK clarified that the testing is not necessarily a step toward the actual issuance of a cryptocurrency.
Central banks have been researching digital currencies in preparation for the emergence of cryptocurrencies in the private sector and a drop in demand for cash.
China and Sweden's central banks are aggressively preparing to issue CBDCs.
