South Korea Targets September For Second Phase Of CBDC Pilot

The Bank of Korea could launch the second phase of Project Hangang, its wholesale central bank digital currency pilot, as early as September, according to a News report. The next stage will bring in more participants and test new ways of using tokenized bank deposits for everyday transactions.

More Banks And New Features Join The Pilot

Participation is set to grow from seven banks to nine, with regional lenders Kyongnam Bank and iM Bank joining the program. The expanded phase will also test government subsidy payments delivered through tokenized bank deposits, alongside new features such as peer to peer transfers, biometric authentication, and automated deposit token transfers. Banks taking part will additionally be allowed to bring in merchant partners to widen where the tokens can be used.

How Project Hangang Works

The pilot relies on a blockchain based wholesale CBDC issued by the central bank, which acts as the settlement asset backing deposit tokens issued by commercial banks. Everyday consumers then use those bank-issued tokens to make payments.

Strong Turnout In The First Phase

The initial phase ran from April to June 2025 and focused on building out payment infrastructure. It drew around 81,000 participants who completed 114,880 transactions using deposit tokens, laying the groundwork for the commercialization tests planned in phase two.