South Korea Plans Q4 Trial of Blockchain-Based Tokens for Government Expenditure

The South Korean Ministry of Economy and Finance is set to launch a trial of blockchain-based deposit tokens for government spending in the fourth quarter, as part of a larger effort to modernize public fund management. According to local reports, the ministry has received approval for the pilot under the 2026 regulatory sandbox program, allowing it to use digital currency for Treasury fund expenditures. The trial will replace the traditional government purchasing card system with tokenized deposits for business promotion expenses. By utilizing programmable token-based payments, the government aims to enhance oversight, reduce manual audits, and lower transaction fees for small businesses. This initiative follows a previous pilot program that used deposit tokens for electric vehicle-charging infrastructure subsidies and is expected to be expanded if it demonstrates improved spending control and cost savings.