The Bank of Korea takes CBDC to the next level: integration with the banking system amid a ban in the United States
The Bank of Korea is taking a decisive step in the development of a central bank digital currency (CBDC), moving the pilot project into a practical phase. This week, the regulator announced the launch of the second phase of the experiment, which involves the full integration of the digital won into the country's existing financial infrastructure. This decision marks a transition from isolated tests to the real-world implementation of state-backed digital money in everyday transactions.
Nine Banks and Full Integration
The key difference in the new phase is the abandonment of simulated transactions. Now, nine leading commercial banks in South Korea will create their own electronic wallets and vouchers, as well as deploy blockchain infrastructure to manage CBDC deposit tokens. These tokens will be directly linked to real bank accounts, allowing consumers to use them for regular purchases and transfers. Additionally, as part of the pilot, the government will begin replacing state subsidies and targeted program funds with digital vouchers, which should increase transparency in budget spending and reduce administrative costs.
Global Contrast: Asia Accelerates, the US Slows Down
Against the backdrop of Seoul's active efforts, the position of the United States appears diametrically opposed. The administration of President Donald Trump has consistently opposed the creation of a digital dollar. Treasury Secretary Scott Bessent recently confirmed that under the current government, a CBDC will not emerge, and the priority will be US leadership in the field of private digital assets.
Moreover, Congress has made a serious bid for the future: both chambers approved the advancement of a major bill, which includes a direct ban on the issuance of a CBDC until December 31, 2030. Thus, the world's two largest economies are moving in opposite directions: South Korea is methodically integrating digital currency into its financial system, while the US is legislatively blocking this process for years to come.
My Analysis: The US reversal is not just a political whim, but a conscious choice to preserve the dollar's role as the dominant private and state settlement unit. However, while Washington debates, countries like Korea are effectively creating a new standard for state-backed digital money. If the pilot proves successful, we will witness the formation of an Asian center of power in the CBDC sphere, which could seriously reshape global financial flows.