South Korea’s 7-Eleven stores will accept payments in the country’s central bank digital currency (CBDC) until June as part of the retailer’s participation in the CBDC test phase.
During this trial period, 7-Eleven will offer a 10% discount on all products purchased using CBDC. Moon Dae-woo, head of 7-Eleven’s digital innovation division, stated that the company is working to incorporate digital advancements into its operations.
The executive also noted that participating in the CBDC test would help speed up the company’s digital transformation process.
Many other stores will take part in South Korea’s CBDC test phase, which runs from April 1 to June 30. The trial involves 100,000 participants who can test payments using CBDC issued by the central bank.
Central bank digital currencies are digital assets issued by governments. Similar to other digital currencies, CBDCs offer faster and more modern payment methods. However, unlike cryptocurrencies such as Bitcoin, which offer a degree of anonymity, CBDCs are government-controlled and monitored.
South Korea’s CBDC test will run from April to June
On March 24, agencies such as the Bank of Korea, the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS) announced the test.
Participants can convert their bank deposits into tokens stored on a distributed ledger, with the tokens pegged to the value of the Korean won.
Government agencies mentioned that citizens aged 19 or older with a deposit account at a participating bank can apply to join. Registration is limited to 100,000 participants, with banks like KB, Kookmin, Shinhan, Hana, Woori, NongHyup, IBK, and Busan involved in the test.
In addition to 7-Eleven, participants will be able to use CBDCs at coffee shops, supermarkets, K-Pop merchandise stores, and delivery platforms. However, there will be a total conversion limit of 5 million won ($3,416) during the test period.
The Bank of Korea first revealed plans for the CBDC test with 100,000 users in November 2023, initially set to begin in the fourth quarter of 2024. The FSS stated that this test is a step toward developing a prototype for a future monetary system.
