Stablecoin

Bank

Pilot

April

<p>South Korea's first central bank digital currency (CBDC) pilot ran without a formal, independent government security inspection. The finding comes from Financial Supervisory Service (FSS) data disclosed to People Power Party lawmaker Lee Heon-seung and reported by Maeil Business (mk.co.kr).</p><h2 id="self-assessment-over-independent-review">Self-Assessment Over Independent Review</h2><p><cite>The Bank of Korea carried out its CBDC pilot between April and June of the previous year.</cite> The pilot, called Project Hangang, involved 100,000 participants and seven major local banks, run in partnership with the Financial Services Commission and the FSS. <cite>The pilot did not undergo a formal, independent security audit. Instead, the participating banks relied on their own pre-test checks and self-assessments, and financial authorities conducted no separate inspection during the initial phase.</cite></p><p><cite>The Bank of Korea explained that the existing security checks were adequate and followed guidelines set by the Financial Supervisory Service.</cite><cite>However, some observers believe that without an external third-party review, there are unresolved questions around independent validation, and the decision raises concerns about operational risks, cybersecurity readiness, and the overall credibility of governance for the CBDC initiative.</cite></p><h2 id="phase-2-presses-ahead-as-stablecoin-talks-resume">Phase 2 Presses Ahead as Stablecoin Talks Resume</h2><p>The scrutiny lands at a busy moment for South Korea's digital currency agenda. The Bank of Korea is preparing to launch Phase 2 of the CBDC pilot in September 2026, expanding to 500,000 users. <cite>Commercial banks will create deposit tokens, a blockchain-based version of the money already in a bank account, that consumers and merchants use for actual payments.</cite><cite>Shin Hyun-son, named Bank of Korea Governor in April, used his first address in office to prioritize the CBDC and Bank of Korea-issued deposit tokens.</cite></p><p>On the legislative front, talks that had been stalled for months appear to be moving again. <cite>On July 20, the ruling Democratic Party of Korea held a closed-door briefing with the Financial Services Commission at the National Assembly Members' Office Building in Yeouido, Seoul, agreeing to accelerate the Framework Act on Digital Assets, the Phase 2 legislation that would legalize and regulate won-denominated stablecoins.</cite><cite>Seoul's ruling party and financial regulators agreed to convene the relevant subcommittee twice a month and reintroduce the bill in September 2026.</cite> The core dispute has been over who holds authority to oversee stablecoin issuance, a disagreement that has pitted the Financial Services Commission against the Bank of Korea for months.</p><p>The audit gap from Phase 1 is unlikely to go away quietly as the program scales up, public funds enter the picture, and regulators race to finalise the broader legal framework around it.</p><p><strong>Sources:</strong><br><a rel="noopener noreferrer nofollow">EconoTimes: Bank of Korea CBDC Pilot Skips Independent Security Audit</a><br><a href="https://www.coindesk.com/business/2026/07/20/bank-of-korea-prepares-for-live-cbdc-transactions-with-nine-banks-in-september" rel="noopener noreferrer nofollow">CoinDesk: Bank of Korea Prepares for Live CBDC Transactions with Nine Banks in September</a><br><a href="https://www.cryptotimes.io/2026/07/20/south-korea-targets-september-for-won-stablecoin-bill-vows-fortnightly-reviews/" rel="noopener noreferrer nofollow">CryptoTimes: South Korea Targets September for Won Stablecoin Bill</a></p>

South Korea trialed a digital won with no independent security check

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