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

In the fourth quarter, the South Korean Ministry of Economy and Finance is set to launch a pilot program for testing blockchain-based deposit tokens in government spending, as part of a larger effort to modernize the management of public funds. According to local media reports, the ministry has received approval for the pilot under a 2026 regulatory sandbox initiative, which will enable the use of digital currency for Treasury expenditures. This move will allow businesses to receive payments in the form of tokenized deposits for promotional expenses, which are currently processed using government purchasing cards. By implementing this new system, the government aims to enhance oversight and improve the efficiency of public spending. The use of token-based payments will enable the programming of predefined conditions, such as spending limits and designated industries, which can help reduce manual audits and lower transaction fees for small businesses. The pilot program is scheduled to take place in Sejong City, following a selection process for participating firms, and is expected to be expanded if it yields positive results in terms of spending control and cost savings.