The Bank of Korea has launched Phase 2 of its Project Hangang central bank digital currency pilot, expanding real-world testing of the digital won with broader banking participation and new programmable payment features.
Korea Explores CBDC- Stablecoin Hybrid Model in Project Hangang ExpansionPhase 2 widens the testing pool by adding BNK Kyongnam Bank and iM Bank, bringing total participation to nine commercial banks. The expansion is expected to support larger-scale transaction testing planned for the second half of 2026.
Under the new phase, banks will integrate the system into their existing applications while covering their own development costs, with the central bank funding core infrastructure and consulting through October 2026.
The updated pilot introduces several new features aimed at improving usability and functionality. These include person-to-person transfers, biometric authentication such as fingerprint login, and automatic conversion of traditional deposits into tokenized balances when users’ digital wallets run low.
Officials are also testing broader treasury disbursements, allowing government payments to flow across multiple banks rather than relying on a limited set of intermediaries. The initiative is linked to improving transparency and efficiency in distributing large-scale public funds.
Merchant participation is expected to grow as well, with both small businesses and large enterprises joining the trial. Lower transaction fees compared with conventional payment systems and the potential for automated, programmable payments are positioned as key advantages.
The timeline for Phase 2 includes early subsidy pilots in the first half of 2026, followed by expanded real-world transaction testing later in the year. The results will inform potential commercialization and regulatory adjustments.
FAQ 🇰🇷 What is Project Hangang?Project Hangang is the Bank of Korea’s pilot program testing a digital won using a hybrid CBDC and deposit token system. How many banks are involved in Phase 2?Nine commercial banks are participating after the addition of BNK Kyongnam Bank and iM Bank. What new features are included in Phase 2?New features include P2P transfers, biometric login, automatic token conversion and programmable government payments. When will large-scale testing occur?Expanded real-world transaction testing is scheduled for the second half of 2026.
