South Korea is expanding its digital currency payment pilot by enlisting two additional commercial banks for Phase 2 of Project Hangang. The Bank of Korea initiative allows users to hold digital currency deposits alongside traditional cash within participating bank applications, according to a report in The Chosun Daily.
South Korea Pilots Expanded Digital Currency System with Commercial Banks, Chosun Reports
19 March 2026 - 11:30 CET
Operating on a blockchain built by the central bank, the project aims to drastically reduce payment fees for merchants and consumers. The expansion follows a disappointing first phase that generated just 114,880 transactions among 81,000 users. To drive adoption, the central bank is introducing biometric authentication and auto-recharge features.
The system will face a major test in the first half of the year when Seoul begins distributing electric vehicle charger subsidies through the digital network. If the upgraded digital currency pilot proves successful, officials plan to use the infrastructure for AI agent payments and future won-pegged stablecoins.
