Kim Dong-seop, the Head of the Digital Currency Planning Team at the Bank of Korea, is speaking at the 2025 Virtual Asset Conference held in the Grand Ballroom of the Westin Chosun Hotel in Jung-gu, Seoul, on the morning of Oct. 16. /Courtesy of CHOSUNBIZ

Kim Dong-seob, Head of Team at the Bank of Korea, said, "The Bank of Korea will present a future currency infrastructure encompassing institutional CBDC and deposits tokens through usability testing of digital currency (CBDC)."

Kim spoke at the '2025 Virtual Assets Conference' held at the Westin Chosun Hotel in Jung-gu, Seoul, on the morning of the 16th, giving a lecture on the topic 'Central Bank CBDC and Future Financial Infrastructure.'

CBDC is a digital currency that the Central Bank issues electronically utilizing technologies such as distributed ledger. It functions as legal tender with the same effectiveness as cash while also serving as a digital payment method. While it is similar to cryptocurrencies like Bitcoin and Ethereum in that it is a digital currency, the difference lies in the fact that it is issued by each nation's Central Bank.

Kim noted, "The Bank of Korea is conducting usability testing for CBDC in collaboration with the Financial Services Commission and the Financial Supervisory Service," adding, "To widen the scope, we are expanding financial infrastructure for institutional CBDC and preparing real transaction tests through deposits tokens, enabling the public to purchase goods."

Deposits tokens, designed similarly to deposits, are being tested in collaboration with KB Kookmin, Shinhan, Woori, Hana, corporations, NongHyup, Busan Bank, and others. Kim stated, "Up to 100,000 general citizens are expected to participate directly in using deposits tokens with digital voucher functionality."

If the CBDC with deposits token functionality is commercialized, it will simplify consumers' transaction procedures. When using credit cards or simple payments, additional settlement processes are required between buyers and sellers, but when paying with CBDC, the buyer simply transfers the CBDC from their electronic wallet to the seller.

Kim also introduced the 'Agora Project.' The Agora Project is a payment improvement initiative involving the Central Banks of seven countries, including five reserve currency countries (the United States, the United Kingdom, Japan, France, and Switzerland), along with Korea and Mexico. Kim pointed out, "The project's significance lies in the fact that all reserve currency countries are participating," and remarked, "Although it is still in its initial stage, we plan to see if we can solve and activate the issues related to cross-border payments."