South Korea to launch tokenized deposit and wholesale wCBDC pilot with 100,000 users this year

South Korea plans to launch a large-scale tokenized deposit pilot by the end of 2024, with an expected participation of 100,000 individuals, according to The Korea Times. The pilot, which was originally scheduled to start in September or October 2023, has been slightly delayed. The pilot will take the form of vouchers that users can use to purchase goods at convenience stores. The move is part of the Bank of Korea's (BOK) plan to advance wholesale central bank digital currencies (wCBDCs) to support interbank tokenized deposit settlements. Currently, six major commercial banks have participated in the project, including NH NongHyup Bank. The Korea Financial Telecommunications & Clearing Corporation (KFTC) will serve as the smart contract management agency. A banking industry insider said that despite the slight delay in the schedule, launching a pilot with 100,000 users this year will be an important global milestone. The Bank of Korea is also actively involved in cross-border payment projects led by the Bank for International Settlements (BIS), including the Agorá project, which involves 7 central banks and 41 institutions to tokenize agency banking. Six South Korean banks – Hana Bank, Korea Development Bank, Kookmin Bank, Nonghyup Bank, Shinhan Bank and Woori Bank – are also participating. South Korea is also an observer of mBridge, another BIS cross-border payments project.