South Korean Central Bank Plans $79.3B CBDC Subsidy Pilot

The Bank of Korea is reviving its central bank digital currency ambitions with a bold new pilot. Governor Rhee Chang-yong revealed plans to distribute 110 trillion won ($79.3 billion) in government subsidies via CBDC during a press conference following August's Monetary Policy Committee meeting.

This unexpected shift comes just two months after the BOK appeared to shelve CBDC development in favor of stablecoin alternatives. The subsidy initiative forms part of the broader Han River Project, South Korea's comprehensive digital currency experiment.

The Ministry of Strategy and Finance championed the CBDC approach, citing enhanced fraud prevention and fiscal efficiency. "Digital fiat will enable principal contractors to better manage subsidy distribution to subcontractors," Rhee explained, outlining the program's operational framework.