Seven South Korean financial lenders have been permitted to participate in a pilot project that will test digital financial services based on CBDCs.
Seven domestic banks have been given permission by the Financial Services Commission of South Korea to take part in a pilot program that will test digital financial services based on deposit tokens and digital currency issued by the central bank.
The program’s goal is to investigate the possibilities of CBDCs in everyday transactions, as the FSC said in a news statement on November 6.
According to the press announcement, the four banks—KB, Shinhan, Woori, and Hana—will issue deposit tokens for digital assets guaranteed by bank deposits.
According to the FSC, public services have historically been accessed using actual vouchers. To deliver the same services more easily, the nation now wishes to use digital vouchers kept on a distributed ledger.
The agency claims the trial also incorporates a digital voucher management platform that enables the government to track and issue vouchers.
Nevertheless, the FSC still needs to provide a project timeline. The nation keeps fortifying its crypto market regulations while also expanding its knowledge of CBDCs.
According to a report published in October, South Korea intends to enact new laws governing cross-border transactions involving virtual assets, including cryptocurrencies. The revised registration and reporting procedures are anticipated to be effective in the second half of 2025.
