The Bank of Korea integrates CBDC into the real banking system: launch of the second phase of the pilot amid the US ban.
The Bank of Korea is taking its central bank digital currency (CBDC) pilot project to a fundamentally new level. While the first phase involved isolated testing, the regulator is now betting on full integration of the digital won into the country's existing banking infrastructure. This is a bold step that contrasts with the U.S. position, where legislative preparations are underway to impose a moratorium on CBDC issuance until 2030.
According to my data, obtained from verified industry sources, the new phase of the pilot involves nine commercial banks. They will need to create a full-fledged ecosystem for CBDC circulation, from electronic wallets and vouchers to blockchain infrastructure. The key difference from the previous phase is that CBDC deposit tokens will now be used not in a test environment, but in real settlements and transactions embedded within existing banking systems.
From Isolated Payments to Everyday Operations
In the first phase, the Bank of Korea distributed pilot tokens through the electronic wallets of participating banks, and consumers simply tested payments with these digital assets. Now, the task is far more ambitious: to make CBDC a full-fledged tool for daily financial operations. Additionally, the second phase includes pilots for replacing government subsidies and targeted program funds with digital vouchers. Thus, authorities aim not only to improve the efficiency of budget fund distribution but also to significantly reduce administrative costs.
Asian Pragmatism vs. American Skepticism
While South Korea confidently moves toward implementing a state digital currency, the U.S. is seeing the exact opposite trend. The administration of President Donald Trump consistently opposes CBDC. Treasury Secretary Scott Bessent recently reiterated that a digital dollar will not appear under the current administration, with the focus instead on U.S. leadership in private digital assets.
Moreover, last week, the U.S. Senate and House of Representatives agreed to advance a major housing bill, which includes a provision directly banning CBDC issuance until December 31, 2030. Thus, the world's two largest economies are moving in directly opposite directions on the issue of state digital currencies.
My analysis: The Bank of Korea's strategy appears pragmatic and forward-looking. By using deposit tokens as an intermediate step between classic CBDCs and stablecoins, Seoul is essentially creating a hybrid model that could become a benchmark for other developed Asian economies. While the U.S. retreats into ideological defense, fearing excessive government control, Korea is gaining invaluable practical experience and a technological advantage that, in the long term, could strengthen the Korean won's position in regional settlements.