The Bank of Korea's Project Hangang enters phase two with nine banks and higher wallet limits, alongside subsidy testing, as Seoul finalizes stablecoin rules under the Digital Asset Basic Act.
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South Korea's central bank will launch the second phase of its CBDC pilot, Project Hangang, in September.
Participation grows from seven banks to nine.
The BOK issues a wholesale CBDC under Project Hangang, which commercial banks use to back deposit tokens.
The first phase ran from April through June and logged 114,880 transactions across roughly 81,000 participants.
Balances were capped at 1 million won in the first phase.
Kyongnam and iM Bank join the original seven participants: KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Industrial Bank of Korea, and Busan Bank.
Wallet limits rise to 10 million won. Cumulative holdings are capped at 100 million won.
New features include peer-to-peer wallet transfers and biometric security.
Automated deposit token functions are also part of the new toolkit.
Testing will include government subsidy distribution, starting with an EV charging program.
"The Bank of Korea will provide the infrastructure for the institutional CBDC, and each bank will conduct its own business using deposit tokens," a Bank of Korea official said. "From the second phase, we will lay the groundwork for commercialization."
Won-backed stablecoins are also getting attention. The National Assembly is considering the Digital Asset Basic Act, which would set their rules.
The bill creates a distinct issuance class for stablecoins and allows foreigners to hold won accounts at overseas banks.
Boosting the won's role in cross-border payments is the stated goal.
As of December, the won's share of global FX trading was 1.8%, the Bank for International Settlements reported.
12th place among currencies. The government has acknowledged this share underperforms South Korea's GDP.
Bank-issued digital money is a global story, not just a Seoul one. PayPal's $2.8B PYUSD Gets Polygon Boost as Bank Stablecoin Looms.
Project Hangang's second phase begins in September. The Digital Asset Basic Act is still before the National Assembly.
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