Scaling the Won: Bank of Korea Advances CBDC Infrastructure
The Bank of Korea (BOK) is significantly accelerating its digital currency roadmap. Following an initial testing period, the central bank is preparing to transition into the second phase of its Central Bank Digital Currency (CBDC) pilot this September. This expansion marks a pivotal shift from theoretical testing to practical, real-world application, involving nine major financial institutions and a capacity for up to 500,000 participants.
Reviewing the Initial Pilot Results
Between April and June 2025, the BOK conducted the first phase of its initial pilot program. During this three-month window, the infrastructure supported 81,000 digital wallets. While the adoption rate for wallet creation was promising, actual transaction activity remained modest, with approximately 42% of users engaging in active spending. In total, the network facilitated 114,880 transactions across a network of 12,000 participating merchants and seven commercial banks.
Project Hangang: Moving Toward Commercialization
The central bank’s initiative, known as Project Hangang, aims to modernize the South Korean won by leveraging blockchain technology. Unlike private stablecoins, which have faced scrutiny from regulators, the BOK is positioning its CBDC as the primary digital evolution of the national currency.
“From the second phase, we will lay the groundwork for commercialization,” a representative from the Bank of Korea stated in a recent Yonhap report. This sentiment underscores the bank’s commitment to prioritizing government-backed digital assets over decentralized alternatives, a stance previously emphasized by the bank’s leadership.
What to Expect in Phase 2
The upcoming phase represents a major leap in functionality. While the first phase served as a proof-of-concept for basic transactions, the second phase introduces high-utility features designed to integrate the CBDC into the daily lives of South Korean citizens:
* Increased Scale: The user base will expand to 500,000, providing a more robust dataset for network stress testing.
* Real-World Financial Integration: Unlike the simulated environments of the past, this phase will involve the disbursement of actual government subsidies, testing the efficiency of direct digital transfers.
* Advanced Payment Features: The pilot will introduce biometric authentication for payments and streamlined person-to-person (P2P) transfer capabilities.
As the BOK continues to refine its digital infrastructure, observers are closely monitoring the project’s progress via resources like the HRF CBDC tracker to see how South Korea’s model compares to global central bank digital currency developments.
