Gate News message, April 16 — South Korea’s Ministry of Economy and Finance has approved a blockchain-based deposit token pilot project under the 2026 regulatory sandbox program, set to begin in the fourth quarter of 2026 in Sejong City, the nation’s administrative capital.
The pilot will replace traditional government purchase cards with digital tokens issued by commercial banks for government ministry business expenses. Unlike credit cards, these deposit tokens are programmable, allowing the government to restrict usage to specific hours (such as 9 AM to 6 PM) or specific industries (such as transportation). This feature aims to prevent misuse of public funds and reduce audits for after-hours or weekend spending. The system also eliminates intermediaries like Visa and Mastercard, removing commission fees (typically 1-3%) that small business owners currently pay to card companies.
This is the second deployment of the technology; the Ministry previously launched a pilot using deposit tokens to pay subsidies for electric vehicle charging stations. If successful, the current pilot will expand nationwide.
The initiative aligns with South Korea’s broader digital currency strategy. Shin Hyun-song, the nominee for Governor of the Bank of Korea (BOK), stated in a written response to the National Assembly that deposit tokens and central bank digital currencies (CBDCs) should be the “core” of the digital currency ecosystem, prioritizing trust and stability over privately issued virtual assets. Commercial banks are actively preparing infrastructure; KB Financial Group partnered with Circle to explore issuing a Korean Won stablecoin, while Shinhan Financial and Hana Financial are reportedly in talks with Samsung Electronics to integrate stablecoin payments into Samsung Pay.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
MicroStrategy Proposes Semi-Monthly Dividends for STRC to Improve Liquidity and Stabilize Stock Price
MicroStrategy has proposed changing its STRC preferred stock dividends from monthly to semi-monthly to enhance liquidity and stabilize stock prices, maintaining an 11.5% annual yield. Concerns about this structure have been raised by Bitcoin critic Peter Schiff.
GateNews8h ago
Pi Network Launches First Smart Contract Feature on Testnet, Enabling Subscription Payments
Pi Network has launched its first Smart Contract feature on Testnet, enabling users to set up automatic subscription payments while maintaining control of their funds. This marks a shift toward ecosystem utility and lays the groundwork for potential mainnet deployment.
GateNews9h ago
Topnod Self-Custody Wallet Becomes Official Partner of Layer1 Blockchain Pharos
Topnod has partnered with Layer1 blockchain Pharos, providing a user-friendly self-custody wallet that simplifies access to real-world assets. It will support Pharos's airdrop activities and facilitate the distribution of RWA assets on the Pharos chain.
GateNews12h ago
Buck Protocol Announces Closure, Holders to Receive Full Redemption
The Buck protocol announced an immediate shutdown, ensuring holders receive 100% capital returns with fully backed reserves. A redemption window has opened with no time limit for asset retrieval.
GateNews14h ago
XRP Evolves From Bridge Asset to DeFi Collateral, Says Evernorth CEO
Evernorth CEO Asheesh Birla is shifting XRP's role from a settlement tool to a productive asset in decentralized finance, focusing on capital efficiency. The company aims to activate dormant capital through initiatives like native XRP lending, positioning XRP as a key player in credit markets.
CryptoFrontier17h ago
Sui Launches USDsui Stablecoin Across DeFi Ecosystem
Sui has launched USDsui, a stablecoin integrated into its DeFi ecosystem for trading, lending, and application development, enhancing liquidity and supporting developers in building efficient financial tools.
GateNews04-17 14:41
