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

As part of a larger effort 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 deposit tokens for government spending. According to local media reports, the ministry has been granted approval under the 2026 regulatory sandbox program to conduct the trial, which involves using digital currency to disburse Treasury funds. The pilot aims to replace the traditional government purchasing card system with tokenized deposits for business promotion expenses. By doing so, the ministry seeks to enhance oversight and introduce more flexibility into the existing Treasury Funds Management Act. Token-based payments offer the advantage of being programmable with predefined conditions, such as spending limits and industry-specific usage, which can help reduce manual audits and lower transaction fees for small businesses. The program is slated to take place in Sejong City, following a selection process for participating firms, with plans for expansion if the trial demonstrates improved control over spending and significant cost savings.