A Cup of Coffee with Deposit Tokens… Bank of Korea's 'Digital Currency' Experiment

Real Transaction Test Starting Next Month

The Bank of Korea and financial authorities will begin the 'digital currency experiment' for the first time next month. Bank deposits can be converted into 'deposit tokens' and used at convenience stores, cafes, bookstores, and more.

The Bank of Korea, Financial Services Commission, and Financial Supervisory Service announced on the 24th that they will conduct a real transaction test of digital currency and open deposit token e-wallets for applicants over the age of 19 with Korean nationality among users of seven banks, including Kookmin, Shinhan, Hana, Woori, Nonghyup, IBK, and Busan, from the 1st of next month to the end of June.

Users can open an e-wallet in each bank's app and convert their existing deposits into deposit tokens. The converted tokens can be used in offline stores such as Kyobo Bookstore and Seven-Eleven convenience stores. They can also be used online at Hyundai Home Shopping, COSMO selling K-pop goods, and the delivery platform Ttaenggyeoyo. The holding limit for deposit tokens per person is 1 million won, and the total conversion limit during the test period is 5 million won.

Transactions are made through QR codes. Payment and receipt are possible regardless of the type of bank that issued the e-wallet. Sales proceeds can be received immediately like cash, and there is no need to pay separate fees to banks. A financial authority official explained, "After the end of this test, we plan to diversify transaction types by reflecting user feedback."

Reporter Shin Yeon-su sys@hankyung.com