South Korea's Blockchain Pilot replaces government card payments with programmable tokens

Small businesses interacting with government entities will see a reduction in transaction costs due to the removal of payment processing layers. This shift is the result of a pilot program by the Ministry of Economy and Finance to replace traditional government card payments with blockchain-based deposit tokens for official expenses. The system embeds defined spending conditions, such as approved categories and time limits, directly into the transactions. These programmable rules simplify compliance and reduce the need for manual review and additional documentation for transactions made on non-business days or late at night. The pilot will launch in Sejong City in the fourth quarter of the year.