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South Korea will test blockchain deposit tokens for government spending in Q4, or reduce transaction fees and decrease audit requirements
The Ministry of Economy and Finance of South Korea announced that it will launch a pilot program for blockchain deposit tokens in Sejong City in the fourth quarter of 2026, to replace traditional government procurement card payments.
The project has been approved under the 2026 regulatory sandbox program, allowing institutions to pay business promotion expenses in the form of tokenized deposits. Token payments can preset spending limits and available industry ranges, helping to reduce the need for manual audits and lowering transaction fees for small businesses by removing intermediaries such as card networks.
This is the second application of deposit tokens in fiscal operations, following the completion of the first pilot in the electric vehicle charging infrastructure subsidy program. If the pilot proves effective, the Ministry of Finance of South Korea plans to further promote the program.
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