South Korea’s Gyeonggi Province to test stablecoin for public payments in August

Gyeonggi Province, South Korea’s most populous province, plans to launch the first phase of a proof-of-concept (PoC) for a blockchain-based stablecoin in August as it explores blockchain technology for regional currency and government disbursements, according to NexBlock.

The project, led by blockchain security company ZKrypto, will initially test the stablecoin’s issuance, circulation and settlement processes before expanding between October and December to cover fraud prevention, privacy safeguards and potential deployment across public benefit programs. The eight-month initiative is scheduled to end in February 2027.

According to ZKrypto, the pilot will rely on zero-knowledge proof technology to prevent duplicate use while protecting user privacy and proof-of-reserves to verify reserve assets in real time.

The company said the effort also reflects concerns that South Korea should strengthen its own stablecoin infrastructure as dollar-denominated stablecoins gain wider adoption globally.