South Korea eyes September launch for second phase of CBDC pilot: Report

The Bank of Korea’s CBDC pilot will add two regional banks, new payment features and tests of government subsidy payments using tokenized bank deposits

The Bank of Korea may launch the second phase of Project Hangang, its wholesale central bank digital currency (CBDC) pilot, as early as September, according to Yonhap News.

The next stage expands participation to nine banks from seven, introduces new payment features and tests government subsidy disbursements through tokenized bank deposits. Regional lenders Kyongnam Bank and iM Bank will join the existing group of participants.

Project Hangang uses a blockchain-based wholesale CBDC issued by the central bank as the settlement asset for deposit tokens issued by commercial banks. Consumers can then use the bank-issued tokens for everyday payments.