Korea's Central Bank Advances CBDC Deposit Token Plan

The Bank of Korea is expanding its central bank digital currency (CBDC) pilot project, called Project Hangang. The project tests bank-issued deposit tokens backed by central bank infrastructure to see if they can support government subsidy payments and everyday transfers nationwide.

The second phase of the pilot began on March 18, 2026, with nine commercial banks participating, including Kyongnam Bank and iM Bank. This phase focuses on large-scale, won-pegged deposit tokens built on a wholesale CBDC layer to cut transaction costs for both large companies and small merchants.

The central bank is also working on a separate test that uses deposit tokens for government payments. The finance ministry is preparing to test blockchain-based payments for selected government expenses as part of a regulatory sandbox exploring distributed ledger technology in public finance.