Bank of Korea adds two banks to digital won trials as real-world testing begins

Korea's central bank and nine commercial lenders started real-world testing of deposit tokens, including subsidy payments and peer-to-peer transfers. What to know : The Bank of Korea has begun phase two of its digital won pilot, expanding to nine commercial banks to test bank-issued deposit tokens for nationwide payments and government subsidies. The new phase will trial large-scale, won-pegged deposit tokens built on a wholesale CBDC layer, aiming to cut transaction costs for both major corporations and small merchants burdened by credit card fees. The pilot advances as South Korea’s broader Digital Asset Basic Act is delayed over disputes about who can issue KRW-pegged stablecoins.