Republic of Korea: Adopted BOK, FSC, and MSIT MoU on pilot project for digital financial services using CBDC and tokenised deposits

On 6 November 2024, the Bank of Korea (BOK), Financial Services Commission (FSC), and Ministry of Science and ICT (MSIT) signed a Memorandum of Understanding (MoU) on the Pilot Project for Digital Financial Services Using CBDC and Tokenised Deposits. The MoU aims to develop and integrate a Central Bank Digital Currency (CBDC) system and a digital voucher management platform. The pilot project will test the use of tokenised deposits, which are digital representations of bank deposits on distributed ledgers, for purposes such as education, culture, and welfare. The project will explore the implementation of real-time payment systems and conditional voucher disbursements supported by blockchain-based solutions. It will also address technical, regulatory, and standardisation requirements, with a focus on ensuring data privacy and security. The pilot involves the BOK, FSC, MSIT, and the Korea Internet & Security Agency (KISA). The findings are expected to assess the feasibility of CBDC and tokenised deposits for practical applications, with the aim of enhancing digital financial services and identifying potential areas for further development.