South Korea’s central bank digital currency pilot, the "Han River Project," will enter a more advanced phase. According to Korean media ETNews, South Korea is integrating its existing mobile banking and account infrastructure into the digital currency system, shifting the pilot’s focus from simple payment testing to scenarios more closely aligned with real-world banking operations.
Depository tokens issued by banks
The core arrangement for this new phase involves participating banks issuing deposit tokens backed by a wholesale CBDC provided by the Bank of Korea. Users do not hold central bank-issued digital currency directly; instead, they use these deposit tokens through electronic wallets embedded in their banking apps.
Connect Account and Transfer Functions
Compared to the first phase, this round of pilot programs is no longer limited to restricted payment scenarios. Commercial banks will build new technological and operational infrastructure to integrate digital currency functionalities into existing banking systems.
- Accounting and Reconciliation
- Interest calculation and transfer functionality
- Withdrawals and other daily banking operations
The report mentioned that the bank will also develop a digital credential system, e-wallets, and a blockchain-based platform to seamlessly integrate these features into existing business processes.
Still in a limited-scale trial
Currently, this initiative is not yet a nationwide official rollout of a CBDC. It remains a limited real-world pilot, with participating banks testing deposit tokens supported by central bank digital currency among specific users and scenarios.
In the first phase, the Bank of Korea provided wholesale CBDC to participating banks, which then issued deposit tokens to their customers and conducted limited payment tests using wallets provided by the banks. The new phase builds on this by further integrating tokenized deposits with traditional banking services.
Stablecoin discussions are appearing simultaneously.
This development comes as South Korea discusses its corporate cryptocurrency regulatory framework. Reports indicate that South Korea is considering excluding dollar-denominated stablecoins, including Tether’s USDT and Circle’s USDC, from its upcoming corporate cryptocurrency regulations.
Meanwhile, Tether has filed seven trademark applications through Korea’s KIPRIS database, indicating that South Korea is simultaneously advancing its own digital currency pilot programs while monitoring the regulatory positioning of foreign stablecoins in its domestic market.