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South Korea’s central bank, the Bank of Korea (BOK), is set to launch a groundbreaking central bank digital currency (CBDC) payment trial in December, allowing 100,000 participants to use digital tokens for purchases at supermarkets and convenience stores. This initiative marks a significant step in the nation’s journey toward a digital economy, in collaboration with six major commercial banks.
Bank of Korea’s CBDC Token Trial to Begin in December
According to reports from the Korea Times, the BOK will enable participants to convert bank deposits into digital tokens for everyday payments at domestic retail outlets. These tokens, functioning like vouchers, will be used at select supermarkets and convenience stores as part of a broader CBDC test.
The central bank will issue wholesale CBDCs to participating banks, who will then convert these into deposit tokens for consumer use. The trial’s objective is to assess whether CBDCs can streamline or improve the current process, in which banks use central bank deposits for transactions and settlements. This initiative builds on the BOK’s digital economy plans first announced in October.
Project Agora and Retail Partnerships
The BOK’s CBDC initiative is part of Project Agora, a global effort exploring the tokenization of cross-border payments, in which six major Korean banks are involved. A banking industry official highlighted the global significance of the trial, stating that while the timeline is slightly delayed, launching the test by year-end with 100,000 participants would be a significant achievement.
To ensure smooth implementation, participating banks are forming partnerships with retailers and developing digital platforms. NH Nonghyup Bank is collaborating with its subsidiary Hanaro Mart, while other banks are negotiating with leading convenience stores and supermarkets to join the program.
This trial represents a key step in South Korea’s broader digital currency strategy, reinforcing its commitment to leading the way in CBDC innovation.
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