The Bank of Korea (BOK) will launch a digital currency pilot program, “Project Han River,” on Apr. 1, running until June 30.

As part of the program, the BOK has issued digital currency to seven participating banks, including Kookmin, Shinhan, Hana, Woori, NongHyup, Industrial Bank of Korea, and Busan Bank.

These banks will distribute tokenized deposits to 100,000 individuals, who can use them for payments at bookstores, convenience stores, coffee shops, supermarkets, and delivery platforms via QR code.

Korean residents aged 19 or older with savings accounts at these banks can register starting Mar. 25, with a holding limit of 1 million won (US$680.15) at a time and a total cap of 5 million won (US$3,400.73) during the pilot.

Kim Dong-sup, head of the BOK’s digital currency strategy team, emphasized minimal changes to the payment process for user convenience. Vendors will benefit from instant settlements and lower transaction fees.

The pilot will also assess how digital currency can enhance settlement processes and address issues like benefit fraud.

Recent Bank of Korea developments