The Bank of Korea (BOK) is preparing to significantly expand its central bank digital currency (CBDC) pilot, “Project Hangang River,” by adding person-to-person (P2P) transfers and broadening the use of digital vouchers for public welfare. The second phase of the trial, now scheduled for as early as October, will mark a shift from merchant-only transactions to a broader ecosystem of digital payments and social programs.
In a recent briefing to participating banks, the BOK outlined its Q4 vision for the next stage of testing. This includes enabling CBDC users to send and receive funds directly among individuals, an important leap toward everyday digital cash use. The central bank also plans to expand its digital voucher initiative, currently being trialed with local governments such as Seoul and Daegu and institutions like Pusan National University and Silla University. These vouchers are targeted at sectors such as youth support, culture, childcare, and small businesses.
The current three-month trial, which runs from April 1 to June 30, involves around 100,000 users. They convert deposits into tokenized CBDC units, which can be used at select merchants, including bookstores and convenience stores, via QR code payment. This live experiment provides critical data on user behavior, system reliability, and merchant adoption.
Initially, the central bank intended to evaluate these results before planning further steps. But a sense of urgency has led to an earlier-than-expected announcement.
“Given that the pilot is under a regulatory sandbox designation and must be completed within two years, we cannot delay,” a BOK official noted. “A Q4 rollout is possible, although still tentative.”
Participating banks are already gearing up. One insider confirmed that while a detailed timeline hasn’t been issued, internal discussions are proceeding under the assumption that P2P features and voucher expansion will go live in the fourth quarter.
Meanwhile, the global landscape for digital currency is diverging. While Korea pushes ahead with CBDCs, the United States is embracing stablecoins, citing concerns over state-controlled currencies and their implications for privacy and financial stability. The Trump administration, now in its second term, is pushing legislation such as the Stablecoin Innovation Act (GENIUS Act) and the STABLE Act to provide regulatory clarity and cement the U.S. dollar’s digital dominance.
The contrast in strategy has ignited debate in Korea. Some experts argue the country should consider launching government-backed stablecoins to remain competitive in the evolving digital financial arena.
As the BOK prepares to test person-to-person capabilities, the next few months could determine whether South Korea emerges as a frontrunner in the CBDC race—or recalibrates its path in response to global trends.