Photo by Marko Mikkonen via Flickr.South Korea’s 7-Eleven shops will be taking part in the test phase of the Bank of Korea’s digital currency (CBDC) project. To that end, the retailer said that by June, all of its shops across the country will accept payments in CBDCs.
From April 1 to June 30, many stores in South Korea will participate in the CBDC testing process. However, for now, only 7-Eleven has agreed to be a test store for the Bank of Korea’s (BOK) “Hangang Project,” a real-world experiment with digital currency transactions.
During the test time, the convenience store chain is said to offer a 10% discount on all items bought with CBDC. According to Moon Dae-woo, who is in charge of 7-Eleven’s digital innovation section, the company is trying to use new digital technologies in its daily operations.
Moon Dae-woo said, “We are making multi-faceted efforts to operate stores efficiently using next-generation digital technologies […]Participating in this digital currency use test has allowed us to accelerate our digital transformation.”
Like other digital assets, CBDCs offer easier and more up-to-date payment options. However, governments control and monitor CBDCs, unlike Bitcoin and other privacy-focused tokens that offer some anonymity.
South Korea has been a hub for cryptocurrencies, especially because its currency has lost value over the years. The US, under Trump, has already discarded CBDCs for crypto.
100,000 participants to test payments
The Bank of Korea first announced the plan in November 2023. The statement stated that 100,000 users would be tested for retail CBDC.
The CBDC test was released by the Bank of Korea, the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS) last year. The testing was supposed to start in the fourth quarter of 2024. However, it has been delayed until now.
The government said that anyone aged 19 or older with a savings account at a bank that was taking part could apply. There were a maximum of 100,000 registrations. Some of the banks taking part in the CBDC tests are KB, Koomin, Shinhan, Hana, Woori, NongHyup, IBK, and Busan.
During the test period, people can turn their bank deposits into tokens that are saved in a distributed ledger. These coins are worth the same as the Korean won.
Participants can use their CBDCs in places other than 7-Eleven, such as coffee shops, groceries, K-pop stores, and delivery services. During the test, users can convert up to 5 million won ($3,416) at a time.
The BOK will also work with the Korea Exchange to add its new digital currency to a simulation system for trading carbon emissions. This will test whether supply transactions are possible versus payment transactions.
Crypto adoption increases in South Korea
According to reports, almost one-third of South Koreans have invested in Bitcoin (BTC) and other cryptocurrencies.
According to data released by the South Korean government, 16.29 million people have accounts on Upbit, Bithumb, Coinone, Korbit, and Gopax as of late February of this year. These are the country’s top five crypto exchanges.
That is not all. According to a recent study by Atmos, South Korea is ranked 10 globally with a score of 52.2, ownership of 13.6%, adoption growth of 167%, searches of 104K per month, and 2 Bitcoin ATMs.
Industry officials predict that South Korea will soon have 20 million crypto investors. One official said, “Some believe the crypto market has reached a saturation point, but there is still an endless possibility for growth compared with the matured stock market.”
That is possible, considering the Financial Services Commission of South Korea said that the country would start a pilot program in the second half of 2025 that would let 3,500 businesses buy cryptocurrency for trading and financial reasons.
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