South Korea to launch tokenized deposit and wholesale wCBDC pilot with 100,000 users this year

Odaily Odaily According to the Korea Times, South Korea plans to conduct a large-scale tokenized deposit pilot by the end of 2024, with an estimated 100,000 individuals participating. The pilot was originally scheduled to start in September or October 2023, but has now been slightly delayed. The pilot will take the form of a voucher, which users can use to purchase goods at convenience stores. The move is part of the Bank of Korea's (BOK) plan to promote wholesale central bank digital currency (wCBDC) to support interbank tokenized deposit settlement. Currently, six major commercial banks have participated in the project, including NH NongHyup Bank. The Korea Financial Telecommunications and Clearing Corporation (KFTC) will serve as the smart contract management agency. A banking insider said that although the schedule has been slightly delayed, launching a pilot with 100,000 users within the year will be an important global milestone. The Bank of Korea is also actively involved in cross-border payment projects led by the Bank for International Settlements (BIS), including the Agorá project, which involves 7 central banks and 41 institutions to tokenize agency banking. Six South Korean banks - Hana Bank, Korea Development Bank, Kookmin Bank, Nonghyup Bank, Shinhan Bank and Woori Bank - are also participating. South Korea is also an observer of mBridge, another BIS cross-border payment project.