South Korea to Introduce Blockchain-Based Tokens for Public Expenditure in Q4

In a move to modernize public fund management, South Korea's Ministry of Economy and Finance is set to launch a pilot program in the fourth quarter, testing the use of blockchain-based tokens for government expenditure. The program, approved under the 2026 regulatory sandbox initiative, enables the use of digital currency for Treasury fund disbursements. By tokenizing deposits, the ministry aims to replace traditional government purchasing cards with a more efficient and transparent system. This innovation permits the programming of predefined conditions, such as spending limits and eligible industries, which can minimize the need for manual audits and reduce transaction fees for small businesses. Following a successful trial in Sejong City, the ministry plans to expand the program, leveraging blockchain technology to enhance oversight and achieve cost savings.