Shinhan Bank said Tuesday it will participate in Phase 2 of the Bank of Korea’s digital currency pilot, known as “Project Hangang.”
Project Hangang is a digital currency initiative led by the central bank with the Financial Services Commission, the Financial Supervisory Service and commercial banks. Under the model, the Bank of Korea issues a wholesale central bank digital currency, and commercial banks issue deposit tokens based on it. Consumers make payments using the deposit tokens issued by their banks.
Phase 2 is designed to test whether a digital-currency-based payments infrastructure can be commercialized, with a focus on building conditions that allow customers to use deposit tokens in everyday life.
Shinhan said it will broaden participation and usage settings compared with Phase 1 and further test functions including person-to-person transfers, interest payments and automatic conversion.
Customers will be able to convert deposits into deposit tokens in the Shinhan SOL Bank app and use them for everyday purchases, including the delivery app Ttaenggyeoyo, convenience stores and Shinhan EZ Insurance travel insurance. The bank also plans to introduce a merchant payment method linked to Shinhan Card.
The project will also examine whether the system can be expanded to public finance disbursements, such as paying local government subsidies, vouchers and policy funds in deposit tokens that can be used only at designated outlets.
In real-transaction tests that began in April last year, Shinhan accounted for 25% of all e-wallet openings among participating banks, 58% of usage and 73% of transaction value, it said. In Phase 2, the bank plans to strengthen links with group platforms and accelerate efforts to build a digital payments ecosystem spanning private and public sectors.
“Deposit tokens are evolving beyond a technology test into a digital means of payment that can be used for real transactions and public finance disbursements,” a Shinhan official said. “We will expand payment experiences customers can feel in daily life and lead the buildout of a digital-currency-based payments infrastructure.”
* This article has been translated by AI.
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