Bank of Korea Links CBDC Pilot to Banks’ Core Systems

The Bank of Korea has advanced its central bank digital currency pilot to a phase that links pilot deposit tokens with the core account systems of participating commercial banks. The change will let those tokens move through banks’ normal transaction and settlement processes.

Under the expanded pilot, banks that issued e-wallets in the first phase will connect those wallets and the deposit tokens they hold to their core account systems. Participating banks must build customer wallet services, digital voucher handling and blockchain-based elements where required to manage tokens alongside existing banking operations.

The pilot will test whether deposit tokens can be routed through back-office accounting, payment rails and settlement workflows used by the banking system. The program will also examine technical tasks needed for commercial deployment, including custody arrangements, reconciliation procedures and settlement finality.

Officials will run experiments that allow tokens to be used for routine payments and interbank transactions. The program includes tests of CBDC-based digital vouchers to distribute government subsidies and policy funds, allowing tokens to be issued and redeemed instead of traditional cash or paper-based support.

The central bank previously distributed pilot CBDC deposit tokens via e-wallets provided by participating banks, and consumers took part in payment experiments. The new phase shifts focus from isolated consumer trials to integration at the institutional level to observe how tokens behave inside existing banking systems.

The Bank of Korea has not provided a public schedule for the rollout or disclosed how many banks will join the next phase. Regulators and program operators are expected to monitor legal, operational and technical issues and collect data on system interoperability and customer experience as integration proceeds.

In the United States, Treasury Secretary Scott Bessent stated, “There will not be a CBDC under the current administration.” Congressional language in recent bipartisan housing legislation would prevent issuance of a U.S. CBDC until Dec. 31, 2030.

Officials running the Bank of Korea pilot will gather transaction flow data, interoperability metrics and user behavior information to inform any future decisions about wider issuance or operational design.