South Korea Launches Central Bank Digital Currency Test Involving Participating Merchants Including 7-Eleven

South Korea Central Bank and Financial Institutions Launch Two-Month CBDC Trial

Starting from April 1, South Korea’s central bank and financial institutions will initiate a two-month real transaction test of Central Bank Digital Currency (CBDC), allowing participants to make payments using CBDC at local 7-Eleven convenience stores.

CBDC is a digital currency produced, issued, and circulated by the central bank, with a value equivalent to fiat currency. According to local media reports, during the testing period, 7-Eleven will offer a 10% discount on all products purchased with CBDC.

Moon Dae-woo, head of the digital innovation department at 7-Eleven Korea, stated that the company is committed to integrating advancements in digital technology into its operations, and participating in the CBDC test will help accelerate the company’s digital transformation.

According to Businesskorea, participants in the CBDC test must have accounts with seven participating banks and register in advance before the test, with a limit of 100,000 participants.

Participants can convert their bank deposits into equivalent deposit tokens and make online or offline payments in designated locations, including the Korean coffee chain EDIYA, the bookstore chain Kyobo, and several supermarkets and online platforms, with 7-Eleven being the only participating convenience store in the test. Transactions will be conducted via QR Codes through bank e-wallets, allowing payers and receiving merchants to transact without needing to use e-wallets from the same bank.

After the conclusion of the actual transaction test, any remaining balance of the deposit tokens held by participants will be returned to their regular savings accounts. Subsequently, South Korean authorities are expected to further explore application scenarios of programmatic functionalities, such as peer-to-peer transfers, to expand the practical uses of CBDC.