South Korea tests blockchain stablecoin in first government pilot
South Korea has launched its first government-backed blockchain stablecoin pilot after Gyeonggi Province confirmed an eight-month proof-of-concept program scheduled to begin in August. SummaryGyeonggi Province will begin South Koreas first government-backed blockchain stablecoin pilot in August.ZKrypto will test issuance, settlement, privacy, fraud prevention, and proof-of-reserves through February 2027.Toss and KT have also launched separate initiatives to develop infrastructure for won-based stablecoins. According to blockchain media outlet NexBlock, Gyeonggi Province, the countrys most populous province, will begin testing a blockchain-based stablecoin in August as part of an initiative to examine its use for regional currency and government disbursements. The project is being led by blockchain security company ZKrypto and is expected to run until February 2027. First phase focuses on core stablecoin functions During the initial stage, the pilot will test how the stablecoin is issued, circulated, and settled before moving into a second phase between October and December. ZKrypto said the later stage will examine fraud prevention measures, privacy protections, and the possibility of using the stablecoin across public benefit programs. To support the pilot, ZKrypto said the system will use zero-knowledge proof technology to stop duplicate spending while protecting user privacy. The company added that proof-of-reserves technology will verify reserve assets in real time