South Korea FSC Designates CBDC and Deposit Token Testing Projects

South Korea's Financial Services Commission designated 5 new innovative financial services on the 15th, including Phase 2 implementation of Project Hangang utilizing central bank digital currency and deposit tokens. The FSC newly designated Gyeongnam Bank and IM Bank as innovative financial service operators for the Phase 2 deposit token-based payment testing within the Bank of Korea's digital currency system. Additionally, the FSC modified existing designations for 7 banks including KB Kookmin Bank that were previously approved for Phase 1 testing.

Phase 2 Testing Expands Scope and Functionality

Phase 2 expands the range of deposit token users and usage locations compared to Phase 1. The testing adds remittance functions beyond existing payment capabilities. The business scope extends to include national treasury fund execution projects.

Enhanced User and Merchant Features Added

User-side enhancements include automatic deposit token deposit and withdrawal conversion, biometric authentication functionality, sufficient holding and remittance limits, and direct payment methods. For merchants, the Phase 2 testing adds non-face-to-face electronic wallet opening for businesses and cash receipt issuance functions. The FSC stated these expanded convenience features will enable broader verification of deposit token utilization potential.

FAQ

What did South Korea's Financial Services Commission designate on the 15th?

The FSC designated 5 new innovative financial services including Phase 2 implementation of Project Hangang utilizing central bank digital currency and deposit tokens. Gyeongnam Bank and IM Bank were newly designated as operators for Phase 2 deposit token-based payment testing.

What new features does Phase 2 deposit token testing include?

Phase 2 adds remittance functions beyond payment capabilities, extends business scope to national treasury fund execution, includes automatic deposit/withdrawal conversion, biometric authentication, direct payment methods, non-face-to-face wallet opening for businesses, and cash receipt issuance functions.