South Korea to Test Blockchain Deposit Tokens for Government Spending in Fourth Quarter of 2026

South Korea currently uses government procurement cards to pay official business promotion expenses, but conventional cards entail transaction fees and costs related to spending controls and post-transaction audits. The Ministry of Economy and Finance is therefore introducing blockchain-based tokens backed by bank deposits, using programmable rules to restrict recipients, purposes and spending limits while improving the transparency and efficiency of treasury spending.

The ministry said it will launch a deposit-token pilot in the fourth quarter of 2026, using blockchain to pay some government business promotion expenses and gradually testing whether the tokens could replace government procurement cards. The system will impose precise spending restrictions and assess potential reductions in transaction fees and audit costs. The exact launch date, participating banks and budget have not yet been disclosed.