BoK digital currency push faces scrutiny as deposit token model is tested

South Korea’s central bank is preparing to launch real-transaction testing for the general public this year in the second phase of its digital currency pilot, Project Hangang, according to Newsis, citing the Bank of Korea on Oct. 13. Materials the Bank of Korea submitted to the National Assembly’s Strategy and Finance Committee showed this year’s project budget rose 61.8% to 12.52 billion won from 7.74 billion won a year earlier. As related spending increased by more than 60%, questions raised during the parliamentary audit over how the project differs from existing payment methods and whether it is necessary have put the effectiveness of the deposit token model to the test.