Bank of Korea to test disbursing vouchers and subsidies using digital currency

The Bank of Korea and commercial banks are planning an experiment to disburse government subsidies using digital currency.

On the 8th (Korea time), according to the industry, the Bank of Korea's Digital Currency Office has, since the end of August, asked officials in charge of virtual assets (cryptocurrencies) and digital currency at each commercial bank about their willingness to participate in tests related to government subsidies. The six major banks (KB Kookmin Bank·Shinhan Bank·Hana Bank·Woori Bank·NH Nonghyup Bank·Industrial Bank of Korea) were reported to have indicated they would positively consider the Bank of Korea's request.

This test is being conducted to check whether current subsidies and vouchers (government-guaranteed coupons) paid from the treasury can be delivered to recipients and used in digital currency. Specifically, it aims to block fraudulent receipt of subsidies and use for unintended purposes through blockchain-based programmable functions, and to accurately measure the effects of subsidies.

The Bank of Korea and the Ministry of Economy and Finance plan to hold a briefing as early as mid this month to share the test schedule and items to be checked. The actual test is expected to be conducted as early as the first half of next year.