Bank of Korea to Expand CBDC Pilot with New Features and Regional Banks in September

The Bank of Korea is set to advance the second phase of its Central Bank Digital Currency (CBDC) pilot starting in September. This phase will introduce two additional regional banks into the program, aiming to broaden the scope of the experiment.

Alongside expanding participation, the pilot will test new payment features and explore the use of tokenized bank deposits for government subsidy payments. These developments are part of the central bank’s efforts to refine the digital currency’s functionality and real-world application, according to CoinTelegraph.

For Japanese markets, closely monitoring South Korea's CBDC progress is relevant as regional central banks increasingly explore digital currencies, potentially impacting FX and cross-border payment dynamics.