Bank of Korea expands CBDC pilot to 500K users

• The Bank of Korea plans to expand its central bank digital currency pilot to as many as 500,000 participants.
• The larger trial will test retail payments and broader real-world use cases for a digital won.
• The pilot forms part of South Korea's continued research into central bank digital currencies.

The Bank of Korea plans to expand its central bank digital currency (CBDC) pilot to as many as 500,000 users as it broadens testing of a digital version of the won.

The expanded programme will evaluate how a retail CBDC functions in everyday payments while allowing the central bank to gather more data on user experience and system performance.

The pilot will involve commercial banks and selected participants testing digital currency transactions in real-world payment scenarios.

Central banks around the world are exploring CBDCs as governments assess how digital forms of sovereign money could improve payment efficiency while maintaining financial stability.

The Bank of Korea has been conducting phased CBDC research for several years, using pilot programmes to examine technical, operational and regulatory requirements before making any long-term decisions.

The expanded trial represents another step in South Korea's digital currency research, although the central bank has not committed to issuing a retail CBDC on a permanent basis.