Bank of Korea Expands CBDC Pilot Program to 500,000 Users

The Bank of Korea plans to launch Phase 2 of its central bank digital currency, or CBDC, pilot program in September 2026. This phase significantly expands the project, allowing participation from nine banks and aiming to involve up to 500,000 user accounts for real currency testing. Phase 1, which took place between April and June 2025, reported 114,880 transactions across 81,000 wallets; however, only 42% of users actively spent the digital currency during that trial.

According to the central bank, Phase 2 will introduce several enhanced features that aim to increase user engagement and mimic standard banking processes. Notable new capabilities include biometric fingerprint approval for transactions, person-to-person transfers, automatic top-ups from linked bank accounts, and the capability for generating cash receipts. Furthermore, this phase will be the first to test the disbursement of government subsidies using programmable tokens.

"From the second phase, we will lay the groundwork for commercialization," stated a Bank of Korea official, highlighting the importance of this pilot in assessing CBDC viability. The emphasis on real government transactions marks a shift from the previous pilot, which was largely exploratory.

This CBDC initiative, known as Project Hangang, aims to create a government-backed, blockchain-based version of the South Korean won. It is designed to streamline digital transactions within the financial ecosystem while providing banks with the infrastructure to handle digital token transactions efficiently. A unique aspect is its classification as wholesale CBDC, meaning it is primarily used for transactions between financial institutions, rather than direct consumer use.

As the program progresses, stakeholders will closely observe how these enhancements affect user adoption and operational efficiency, particularly in terms of integrating with everyday banking activities. The upcoming pilot is positioned as a critical step towards establishing a fully operational digital currency system in South Korea.