7-Eleven in South Korea starts digital currency test phase: 10% discount on CBDC payments until June

7-Eleven in South Korea starts digital currency test phase: 10% discount on CBDC payments until June

7-Eleven and the CBDC project in South Korea: A step into the digital future

7-Eleven stores in South Korea will participate in the testing phase of the Bank of Korea's CBDC (Central Bank Digital Currency) project. By June 2024, all 7-Eleven stores in the country plan to accept payments in central bank digital currencies (CBDCs).

From April to June 2024, numerous stores in South Korea will participate in the CBDC testing process, with 7-Eleven serving as a test store for the Bank of Korea's “Hangang Project.” The aim of this initiative is to conduct real-world experiments with digital currency transactions. During the trial period, the convenience store chain will offer a 10% discount on all items purchased with CBDCs.

According to Moon Dae-woo, head of digital innovation at 7-Eleven, the company is trying to integrate new digital technologies into its daily operations. He emphasized: “We are pursuing multi-faceted efforts to conduct business efficiently using next-generation digital technologies.”

CBDCs, similar to other digital assets, offer simplified and contemporary payment options. However, unlike cryptocurrencies such as Bitcoin, which offer a certain level of anonymity, CBDCs are subject to government control and supervision. South Korea has emerged as a major cryptocurrency location, particularly as the value of its currency has declined over the years.

Test phase with 100,000 participants

The Bank of Korea first announced the plan in November 2023. The statement noted that 100,000 retail users will participate in the testing. Originally planned for the fourth quarter of 2024, the test phase has so far been delayed.

The requirements for participation are that participants are at least 19 years old and have a savings account at one of the participating banks. The associated banks include KB, Kookmin, Shinhan, Hana, Woori, Nonghyup, IBK and Busan. During the test, participants will have the opportunity to convert their bank deposits into digital tokens that will be stored on a distributed ledger. These digital currencies are worth as much as the Korean currency.

Participants can use their CBDCs not only at 7-Eleven, but also at cafes, grocery stores, K-pop stores, and delivery services. During the testing period, users can convert up to 5 million won (approximately $3,416) into tokens. The Bank of Korea also plans to work with the Korea Exchange to integrate the new digital currency into a simulation system for trading carbon emissions. This is intended to test both supply and payment transactions.

Increasing crypto adoption in South Korea

According to reports, almost a third of South Koreans have invested in Bitcoin (BTC) and other cryptocurrencies. According to South Korean government data, at the end of February 2024, approximately 16.29 million people have accounts on leading cryptocurrency exchanges such as Upbit, Bithumb, Coinone, Korbit and Gopax.

A recent study by Atmos shows that South Korea ranks 10th globally in crypto adoption, with a score of 52.2, an ownership rate of 13.6%, and adoption growth of 167%. Industry observers expect the number of crypto investors in South Korea to soon reach 20 million. A specialist official noted: “Some believe that the crypto market has reached a saturation point, but there are still endless growth opportunities compared to the already mature stock market.”

Given South Korea's financial services agency's plans, the country is expected to launch a pilot program in the second half of 2025 that will allow 3,500 companies to use cryptocurrencies for trading and financial purposes.

Overall, the progressiveness and adaptability of the South Korean market shows that the integration of digital currencies and technologies is no longer just a trend, but an integral part of future payment transactions.