South Korea is preparing to launch the second phase of its central bank digital currency (CBDC) pilot, Project Hangang, as early as September, according to a report by Yonhap News.
The Bank of Korea will expand participation in the pilot from seven to nine banks, adding regional lenders Kyongnam Bank and iM Bank. This phase will introduce new payment features and test government subsidy payments using tokenized bank deposits.
Project Hangang utilizes a blockchain-based wholesale CBDC issued by the central bank, which serves as the settlement asset for deposit tokens issued by commercial banks. Consumers can use these bank-issued tokens for everyday transactions.
The first phase of the pilot, conducted from April to June 2025, focused on payment infrastructure and involved approximately 81,000 participants who completed 114,880 transactions using deposit tokens.
The upcoming phase aims to explore commercialization aspects, including peer-to-peer transfers, biometric authentication, and enhanced automated deposit token features.
