Shinhan Bank: "Joining Phase 2 of Digital Currency Project... Expanding Scope of Use"

On March 18, Shinhan Bank announced that it will participate in the second phase of the Bank of Korea's digital currency pilot project, "Project Han-Gang," expanding the practical use of deposit token-based payment services across all aspects of daily life.

This phase of the project aims to verify the commercial viability of a digital currency-based payment and settlement infrastructure by creating an environment where customers can use deposit tokens in real-life situations. Compared to the first phase, both the scale of participation and the range of use cases have been expanded. Functions such as peer-to-peer transfers, interest payments, and automatic conversion will also be further enhanced, allowing for a broader verification of practical usability.

Customers can convert deposits into deposit tokens through the Shinhan SOL Bank app and use them for payments at convenience stores, the delivery app "Ddang-Gyeo-Yo," and Shinhan EZ General Insurance’s travel insurance, among others. Shinhan Bank also plans to provide a merchant payment method linked with Shinhan Card to increase usability across both online and offline channels.

This project will also test the potential for expansion into public finance execution. Local government subsidies, vouchers, and policy funds can be distributed using deposit tokens and spent at designated locations. This approach is expected to prevent the misuse of funds for unintended purposes and improve the efficiency of payment and settlement processes.

In the first phase of testing, which began in April last year, Shinhan Bank accounted for 25% of all electronic wallet openings, 58% of total usage, and 73% of total transaction amount among participating banks. Building on this experience, the bank plans to further strengthen the linkage of group platforms and accelerate the creation of a digital payment ecosystem spanning both private and public sectors in the second phase.

A Shinhan Bank representative stated, "Deposit tokens have evolved beyond technological verification and are now developing into a digital means of payment that can be used for actual payments and public finance execution. We will continue to expand customers’ everyday payment experiences and lead the establishment of a digital currency-based payment and settlement infrastructure."

This content was produced with the assistance of AI translation services.