South Korea Plans September Launch for Second Phase of CBDC Pilot
Project Hangang to test payment features with tokenized bank deposits.
1Second Phase of Project Hangang
The Bank of Korea plans to launch the second phase of Project Hangang in September 2025. This phase will expand the number of participating banks from seven to nine and test new payment features. Government subsidy disbursements through tokenized bank deposits will also be tested to enhance system usability.
2Participating Banks
Regional banks such as Kyongnam Bank and iM Bank will join the second phase. These banks will use the blockchain-based CBDC issued by the central bank as the settlement asset for deposit tokens issued by commercial banks. This will allow consumers to use bank-issued tokens for everyday payments.
3Results of the First Phase
The first phase of Project Hangang was conducted from April to June 2025, with approximately 81,000 participants completing 114,880 transactions using deposit tokens. This phase focused on testing the payment infrastructure and successfully demonstrated the system's core functionality.
4New Features
The second phase will introduce new features such as peer-to-peer transfers, biometric authentication, and automated deposit token features. These additions aim to expand the commercial use of CBDC and make the system more user-friendly.
5Tokenized Deposits
Project Hangang uses blockchain-based CBDC as the settlement asset for deposit tokens issued by commercial banks. This approach enhances the security and efficiency of payment systems while offering consumers greater flexibility.
6The Future of CBDC
South Korea's CBDC pilot project is a significant step towards the future of digital currencies. The success of the second phase could contribute to the widespread adoption of CBDC in commercial use and the transformation of payment systems.