South Korea Allocates 25% of $499B Budget in Crypto by 2030

South Korea plans to devote a quarter of its 499 billion budget to digital tokens by 2030, starting with subsidies on electric vehicles in 2026 as part of the Project Hangang CBDC system.

South Korea demonstrated bold intentions to transform fiscal control using digital currency. By 2030, the government will have carried out one-fourth of national treasury funds as deposit tokens. This project will be a huge blockchain integration with the 2026 budget amounting to 728 trillion Korean won.

The Digital Currency Utilization Plan of the Advanced National Treasury Fund Management was introduced by the Ministry of Economy and Finance. Deputy Prime Minister Koo  Yun-cheol said, We are going to be more aggressive with fiscal policy and make a big change. This strategy is associated with the Project Hangang experiment of the Bank of Korea.

Digital Won Powers EV Sector First

Project Hangang is a project that tries to deposit tokens issued by banks on blockchain platforms. The central bank analyzes the possibility of these tokens to circulate and operate as limited vouchers. Deposit tokens will be introduced in early 2026 to install charging stations for electric vehicles.

The government anticipates a shorter settlement period and a lower amount of fraud. One of the officials of the ministry affirmed intentions to interconnect deposit token systems with retail POS systems. Tight integration with blockchain infrastructure will occur as the National Fiscal Integrated Information System will be integrated with it.

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Legal Framework Gets Major Overhaul

The existing regulations do not define digital assets as part of national treasury funds. The National Treasury Fund Management Act needs to be revised to allow payments in token form. Legislative changes will be spearheaded by the Financial Services Commission once the Digital Asset Basic Act is complete.

Development of CBDC goes hand in hand with regulations of stablecoins. The National Assembly considers the proposals that the issuers would be required to have 5 billion won of capital. Issuers are required to place 100 arrears in government bonds or high-liquidity assets.

The Foreign Exchange Transactions Act undergoes amendments to avoid the illegal transactions. The existing policies permit non-documented remittances of up to one hundred and ten thousand dollars per individual in a year. Currently, stablecoins can evade these restrictions, which concerns tax evasion. The ministry considers relevant limitations to the use of the stablecoin as a foreign exchange.

Electronic wallets will spread to stock exchange tokens. The infrastructure development involves the dBrain system integration as digital treasure management. South Korea had earlier made cash handouts of $7billion and gift certificates of $400million.

The Bank of Korea halted CBDC initiatives on two occasions after the first pilot projects four years ago. The recent suspension was preceded by the administration’s shift toward stablecoins. Local banks are now developing systems to facilitate digital won distribution, and it is an indication of new devotion to blockchain-based fiscal activities.

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