Bank of Korea launches Phase 2 of 'Project Hangang'… CBDC pilot resumes, broader bank participation

As the Bank of Korea’s central bank digital currency (CBDC) pilot resumes, discussions over building digital payment infrastructure also appear to be gaining pace.

According to industry sources on the 23rd, the Bank of Korea has recently begun Phase 2 trials of “Project Hangang” aimed at commercializing a CBDC. In this phase, in addition to the seven banks that previously participated, Kyongnam Bank and iM Bank have newly joined, expanding the scope of testing.

Banks plan to use the experiment as a testbed for applying a “deposit token”-based payment system to real-world services. Some banks are said to be reviewing ways to link token-based payments with their own platforms and insurance products.

A notable feature of the Phase 2 trial is that incentives to participate have increased compared with the first test. In the early stage, participation by banks was limited due to the cost burden of building infrastructure and the lack of a clear commercialization roadmap, but sentiment has shifted recently as expectations for growth in the digital payments market have been factored in.

The industry views the experiment as an important step toward gauging the direction of future digital currency adoption. In particular, it is expected to focus on verifying feasibility in real service environments and operational stability.