BOK Steps Up Deposit Token Push With Auto-Conversion, Treasury Payment Tests

The Bank of Korea is accelerating preparations to commercialize deposit tokens built on a central bank digital currency, or CBDC.

Yonhap News reported on May 19 that the BOK recently commissioned consulting work from external specialists in connection with the second phase of testing for Project Hangang. The work is intended to advance the central bank’s CBDC system and deepen preparations for the commercial rollout of deposit tokens.

Nine banks will take part in the second-phase test, up from the earlier round. The new phase will also add a function that automatically converts regular bank deposits into deposit tokens when users do not have enough tokens.

The BOK is also pursuing tests to distribute government subsidies and coupons in the form of deposit tokens. It plans to assess whether the government’s treasury fund disbursement system can be linked to deposit tokens.

Preparations are under way to start treasury fund disbursement-related tests in the first half of 2026, a Bank of Korea official said. Real-transaction testing involving the general public is set to begin in the second half.

Through the consulting project, the BOK will also examine incentive structures for participating institutions such as banks and merchants, the stability of the operating framework and risk-management measures. It also plans to prepare branding and communications strategies to improve user adoption.

Separately, Senior Deputy Governor Shin Hyun-song, who led the design and operation of the Bank for International Settlements' Project Agora, is said to be paying close attention to Project Hangang.