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The new phase focuses on expanding the use of “deposit tokens” linked to the Korean won, built on infrastructure supported by a central bank-issued digital currency. This model enables faster and more efficient payment execution compared to traditional financial systems.

The initiative is designed to provide a low-cost alternative for businesses and merchants that currently face high transaction fees, particularly those associated with credit card payments. By leveraging digital currency infrastructure, the Bank of Korea aims to streamline payment processes and enhance cost efficiency across the economy.

The pilot program includes testing a range of use cases, most notably peer-to-peer (P2P) transfers and large-scale retail payments. It also explores integrating the digital won into government disbursements, such as subsidies for electric vehicle charging infrastructure, with plans to roll out these applications in the near future.

In addition, the project is examining the use of digital currency within smart systems, including AI-driven agents, reflecting a broader trend toward integrating fintech innovations with artificial intelligence in the digital economy.

This move comes as South Korea seeks to strengthen its position in the global financial innovation race by building a comprehensive digital ecosystem that reduces reliance on traditional payment methods and supports a faster, more efficient, and resilient economy.