Catenaa, Wednesday, March 19, 2025- South Korea’s central bank will begin a large-scale pilot of its central bank digital currency (CBDC) project, named “Hangang,” in April, testing digital payments with 100,000 citizens and seven major banks.
The Bank of Korea (BOK) announced the three-month trial, running through June, to evaluate whether tokenized deposits can streamline digital transactions and settlement processes. Participants will be able to convert their bank deposits into tokenized funds for payments at local stores, supermarkets, coffee shops, and online retailers. Payments will be facilitated via QR codes on mobile banking apps.
A BOK spokesperson said the pilot aims to minimize intermediaries in transactions, allowing merchants to receive real-time settlements. The program will also test whether distributed ledger technology can replace traditional settlement systems.
Participants will be limited to holding one million Korean won (about $689) in deposit tokens, with an option to top up to a total of five million won. They will also have the ability to convert tokenized deposits back into cash.
While advancing its CBDC research, the BOK reiterated that it has no plans to include bitcoin in its foreign exchange reserves, citing International Monetary Fund standards. However, it said it would monitor global discussions on the potential inclusion of digital assets in official reserves.
