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Bank of Korea Starts Phase 2 Digital Won Pilot With Nine Banks to Test Subsidy Payments

The project centers on bank‑issued deposit tokens designed to cut payment costs.

Overview

  • Phase 2 expands participation from seven to nine banks, adding Kyongnam Bank and iM Bank to run real transactions on CBDC‑backed deposit tokens.
  • Live government subsidy disbursement is being piloted, with officials targeting a start in the first half of 2026.
  • Usability upgrades include fingerprint approvals, peer‑to‑peer wallet transfers, and automatic top‑ups to address Phase 1 friction and low usage.
  • The central bank presents deposit tokens as an intermediate step and has urged regulators to confine early won‑stablecoin issuance to licensed banks.
  • Large‑scale transactions across all nine banks are planned for the second half of 2026, with exploration of AI‑driven automatic payments and lower merchant fees.