The Bank of Korea takes CBDC to the next level: a pilot in the real banking system amid a ban in the US
The Bank of Korea is taking a decisive step in the development of a central bank digital currency (CBDC), moving to the second phase of its pilot project. At this stage, the experiment goes beyond isolated tests and integrates into the country's existing financial infrastructure. This is a fundamentally new level that brings us closer to the real-world implementation of government-issued digital money.
What changes in the new phase?
In the previous stage, the Bank of Korea distributed pilot CBDC tokens through the electronic wallets of participating banks. Now, nine commercial banks will create a full-fledged infrastructure: electronic wallets, vouchers, and blockchain solutions for managing these digital assets. The key difference is that CBDC deposit tokens can be used for real payments and transactions within the existing banking system. This is not just a payment test, but a full integration of digital currency into everyday financial operations.
The second phase also includes pilots for replacing government subsidies and targeted program funds with digital vouchers. Thus, the authorities aim to increase the efficiency of budget fund distribution and significantly reduce administrative costs. This is a direct step toward the digitization of government finances.
Contrast with the US position
Against the backdrop of active CBDC promotion in South Korea, the position of the United States appears diametrically opposite. The administration of President Donald Trump consistently states the inadmissibility of issuing a digital dollar. Treasury Secretary Scott Bessent recently confirmed that under the current administration, a CBDC will not appear, and the focus will be on US leadership in the field of private digital assets.
Moreover, the US Senate and House of Representatives have agreed to advance a large-scale housing bill, which includes a provision directly banning the issuance of a CBDC until December 31, 2030. Thus, the two largest economies in the world are moving in directly opposite directions: South Korea is actively implementing government digital money, while the US is legislatively blocking this process for years to come.
The Bank of Korea positions deposit tokens as an intermediate step between CBDCs and stablecoins, highlighting their hybrid nature and potential for future integration.
Analyst comment: The divergence in approaches between South Korea and the US creates a unique precedent. While Washington bets on private stablecoins, Seoul could gain a significant advantage in the efficiency of government finances and control over the money supply. If the Bank of Korea's pilot proves successful, it will become a powerful argument for other central banks and could accelerate a review of the prohibitive policy in the US in the coming years.