Bank of Korea Expands CBDC Pilot to 500,000 Users

The Bank of Korea’s Project Hangang uses a two-tier structure in which the central bank issues a wholesale central bank digital currency for institutional settlement, while commercial banks provide deposit tokens for consumer payments. The model, described by officials as a middle ground between a CBDC and a stablecoin, is designed to preserve banks’ intermediary role while testing digital payments, government disbursements and potentially lower transaction costs for merchants.

A July 20 report said the Bank of Korea will launch Phase 2 in September 2026, raising participation from seven banks to nine and allowing as many as 500,000 users. The trial will introduce biometric approvals, person-to-person transfers, automatic top-ups and government subsidies delivered through programmable deposit tokens. Phase 1, conducted from April to June 2025, recorded 114,880 transactions across 81,000 wallets, although only 42% made payments. Banks invested an estimated 30 billion to 35 billion won in supporting infrastructure.