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

The South Korean Ministry of Economy and Finance is set to launch a pilot program in the fourth quarter to utilize blockchain-based deposit tokens for government expenditure, as part of a larger effort to modernize public fund management. According to local reports, the ministry has been granted approval under the 2026 regulatory sandbox program to conduct a trial using digital currency for Treasury fund spending. This move will allow business promotion expenses to be paid using tokenized deposits, replacing the traditional government purchasing card system. By doing so, the ministry aims to enhance oversight and streamline the process. The token-based system can be programmed with specific conditions, such as spending limits and eligible industries, potentially reducing manual audits and lowering transaction fees for small businesses receiving government payments. This initiative follows an earlier pilot program that utilized deposit tokens for subsidies related to electric vehicle-charging infrastructure. The upcoming trial is slated to take place in Sejong City, with plans for expansion if it demonstrates improved spending control and significant cost savings.