South Korea to Launch Large-Scale Tokenized Deposit Pilot by End of 2024

According to Odaily, South Korea plans to initiate a large-scale tokenized deposit pilot by the end of 2024, involving approximately 100,000 individuals. Originally scheduled to start in September or October 2023, the pilot has experienced a slight delay. The initiative will utilize a voucher-like system, allowing users to purchase goods at convenience stores. This effort is part of the Bank of Korea's (BOK) wholesale central bank digital currency (wCBDC) program, aimed at supporting interbank tokenized deposit settlements. Currently, six major commercial banks are participating in the project, including NH NongHyup Bank. The Korea Financial Telecommunications and Clearings Institute (KFTC) will manage the smart contracts. A banking industry insider noted that despite the slight delay, launching a pilot involving 100,000 users within the year would be a significant global milestone. The Bank of Korea is also actively involved in the Bank for International Settlements (BIS) led cross-border payment projects, including the Agorá project, which involves seven central banks and 41 institutions, aiming to tokenize correspondent banking services. South Korea's six banks—Hana Bank, Korea Development Bank, KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, and Woori Bank—are also participants. Additionally, South Korea is an observer in another BIS cross-border payment project, mBridge.