Bank of Korea to Expand 'Deposit Token' Real-World Testing Starting in September

[Economy 365]

The Bank of Korea is accelerating the commercialization of its digital currency, the 'deposit token.'

Starting as early as September, the bank plans to conduct real-world testing with no set end date.

Deposit tokens are digital deposits issued by commercial banks based on a wholesale central bank digital currency (wCBDC) issued by the Bank of Korea, which the general public can use for actual payments.

Following the first phase, the second phase will see the number of participating banks increase from 7 to 9. New features will also be added, including peer-to-peer transfers, biometric authentication, and automated deposit and withdrawal functions.

Furthermore, the scope of use will be expanded to include merchants secured by the banks, and the real-world testing will continue indefinitely to establish a foundation for full-scale commercialization.

The Bank of Korea is also pursuing plans to utilize deposit tokens for the payment of electric vehicle charging subsidies and public sector business expenses.

By leveraging blockchain technology, the usage location and expiration date can be set in advance, which is expected to help prevent the fraudulent receipt of subsidies.

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※ Please note: This article was translated by AI and may contain errors.