The Bank of Korea has officially launched a pilot program for a central bank digital currency (CBDC) with seven major domestic banks.

The initiative, designed to explore the potential of digital currencies in enhancing financial services, was announced on November 6. The Bank of Korea, alongside the Ministry of Science and ICT and the Financial Services Commission, signed an agreement to demonstrate how CBDC and tokenized deposit assets can transform public financial experiences.

According to a report published by "Business Korea", the pilot will focus on the integration of CBDC with deposit tokens, which are digital assets tokenized from bank deposits and recorded on a distributed ledger.

The demonstration will involve testing the ease of using digital vouchers via mobile applications—replacing traditional paper vouchers with QR payments and other mobile-based technologies.

Seven prominent banks, including Kookmin, Shinhan, Woori, Hana, Industrial Bank of Korea, NongHyup, and Busan Bank, were authorized last month to issue deposit tokens, marking a key step toward realizing this vision. These banks will undergo continuous assessments to ensure their systems meet the standards for innovative financial services.

According to Yoo Sang-im, Minister of Science and ICT, this project represents a significant leap toward a digital economy, leveraging blockchain and CBDC technologies.

Furthermore, Kim Byung-hwan, Chairman of the Financial Services Commission, emphasized that the real transaction test would provide valuable insights into the practical benefits CBDC could offer to everyday users.

Bank of Korea Governor, Rhee Chang-yong, highlighted that technological advancements in tokenization could revolutionize both monetary systems and financial markets, reaffirming the importance of collaboration with all involved institutions to drive the initiative forward.

On a related note, in October, South Korea made significant moves in the cryptocurrency landscape. The country's legal system recognized cryptocurrency, including Bitcoin, as marital assets in divorce settlements, allowing spouses to claim crypto holdings during divorce proceedings.

Meanwhile, the South Korean government announced plans to apply foreign exchange regulations to cross-border transactions involving dollar-pegged stable coins. This step comes as the Ministry of Economy and Finance seeks measures to ensure the stability and soundness of stablecoin transactions, recognizing their growing role not only within the crypto ecosystem but also in global transfers.