The Bank of Korea has officially kicked off a real-world pilot test of its Central Bank Digital Currency (CBDC), marking a significant milestone in the nation’s digital finance evolution. Starting April 1 and running through May 31, the two-month trial allows participants to use CBDC for everyday purchases at select retailers — including 7-Eleven stores across the country.
This initiative represents one of the most comprehensive CBDC field tests in Asia, integrating major financial institutions, retail chains, and digital payment infrastructure. The pilot aims to evaluate the feasibility, security, and usability of a government-issued digital currency in real-life transaction environments.
Understanding CBDC: A Digital Version of the Korean Won
A Central Bank Digital Currency is a digital form of a nation’s fiat money, issued and regulated by the central bank. Unlike cryptocurrencies such as Bitcoin or Ethereum, CBDCs are centralized and fully backed by the state, ensuring they carry the same value and legal status as physical cash.
In this trial, users can convert funds from their traditional bank accounts into digital “deposit tokens” that function identically to cash but exist in a secure digital wallet. These tokens can be used for both online and in-person payments at designated merchants, including EDIYA Coffee, Kyobo Book Centre, various supermarkets, and select e-commerce platforms.
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Why 7-Eleven’s Involvement Matters
Among the participating retailers, 7-Eleven stands out as the only national convenience store chain involved in the pilot. This strategic inclusion highlights the importance of high-frequency, low-value transactions in evaluating CBDC performance under real-world conditions.
According to Moon Dae-woo, head of digital innovation at South Korea’s 7-Eleven, “We are actively integrating advancements in digital technology into our operations. Participating in the CBDC pilot supports our broader goal of accelerating digital transformation across our retail network.”
To incentivize user adoption, all purchases made using CBDC at 7-Eleven during the test period come with a 10% discount, as reported by local media outlets. This promotional offer not only boosts consumer engagement but also provides valuable data on spending behavior and transaction volumes.
How the CBDC Trial Works
Participation in the pilot is open to up to 100,000 individuals who hold accounts with any of the seven major banks involved in the program. Interested users must pre-register before gaining access to the digital wallet system.
Once registered, users receive a mobile-based electronic wallet that supports QR code-based payments. Transactions can be completed regardless of whether the payer and merchant use the same banking provider — a key feature designed to ensure interoperability across financial institutions.
Merchants benefit from instant settlement of funds, eliminating delays typically associated with card payments or third-party e-wallets.
“Unlike other payment services, merchants receive sales revenue immediately — just like cash,” said the Financial Services Commission of Korea. “This mechanism could significantly reduce liquidity management burdens and eliminate additional fees charged by e-wallet issuing banks.”
After the trial concludes, any remaining deposit token balances will be automatically refunded to users’ original bank accounts, ensuring no financial risk to participants.
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Expanding Use Cases Beyond Retail Payments
While the current phase focuses on retail spending, South Korean authorities have outlined plans to explore more advanced functionalities in future stages. These include:
- Peer-to-peer (P2P) transfers
- Programmable money features, such as time-bound or conditional payments
- Integration with government disbursement systems, like welfare or tax refunds
- Cross-border payment experiments in collaboration with other central banks
Such developments could position South Korea as a leader in leveraging CBDCs for both domestic efficiency and international financial innovation.
Frequently Asked Questions (FAQ)
What is a Central Bank Digital Currency (CBDC)?
A CBDC is a digital version of a country’s official currency, issued and regulated by its central bank. It functions like physical cash but exists in electronic form, offering secure, traceable, and efficient transactions.
Who can participate in South Korea’s CBDC pilot?
Up to 100,000 individuals with accounts at one of the seven participating banks can join. Participants must pre-register and download a dedicated digital wallet app to take part in the trial.
Where can I use CBDC during the pilot?
You can use CBDC at select retailers including 7-Eleven, EDIYA Coffee, Kyobo Book Centre, several supermarkets, and some online platforms. 7-Eleven is currently the only convenience store chain involved.
Is my money safe during the CBDC trial?
Yes. All funds converted into deposit tokens are fully backed by the issuing bank. Any unused balance will be automatically returned to your original bank account after the test period ends.
Do I need a special device to use CBDC?
No. The system operates through a mobile app that generates QR codes for payment. As long as you have a smartphone and internet access, you can participate.
Will CBDC replace cash in South Korea?
Not in the near future. The pilot is experimental, and officials emphasize that CBDC is intended to complement — not replace — physical currency. Cash will remain legal tender for the foreseeable future.
The South Korean government remains committed to a cautious, phased rollout, prioritizing security, inclusivity, and public trust.
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Looking Ahead: The Future of Digital Finance in Korea
The current trial is just the beginning. If successful, it could lead to a full-scale launch of a digital won within the next few years. More importantly, it sets a precedent for how advanced economies can modernize their monetary systems while maintaining stability and consumer confidence.
With strong institutional support, clear use cases, and active private-sector collaboration, South Korea is positioning itself at the forefront of the global CBDC movement — one QR code scan at a time.