South Korea to test CBDC backed deposit tokens for government expenses
South Korea has approved a pilot that will let public officials pay government operating expenses with blockchain based deposit tokens instead of physical government cards. According to The Chosun Daily, the Ministry of Science and ICT approved the project during the 45th ICT Regulatory Sandbox Review Committee meeting held on Sept. 21, with the ministry announcing the decision a day later. The blockchain based government fund execution project was among nine cases granted regulatory exemptions by the committee. It will allow officials to make eligible payments by scanning QR codes on smartphones and using deposit tokens connected to the Bank of Koreas digital currency infrastructure. Existing rules under South Koreas National Treasury Funds Management Act have limited payment methods for government office operating expenses to tools including government purchase cards and bank transfers. The sandbox exemption creates a route for digital currency to be tested without first changing the underlying law. Six banks will participate in the government payment trial, including KB Kookmin Bank, NH NongHyup Bank, Shinhan Bank, Woori Bank, Industrial Bank of Korea and Hana Bank. Deposit tokens will replace cards for selected government payments Under the pilot, participating public officials will be able to use deposit tokens for expenses such as business promotion









