Korea Minting Corp, Toss complete blockchain-based public payment proof of concept

The Korea Minting and Security Printing Corp. has completed a proof-of-concept test with Toss operator Viva Republica to link blockchain-based CBDC with public payment infrastructure, including local gift vouchers.

The two companies announced Friday they had finished a proof-of-concept for "blockchain-based public payment infrastructure." The verification follows a strategic MOU the two signed April 22.

The companies focused on whether blockchain-based CBDC could be connected to existing public payment systems, in preparation for the potential future use of digital currencies in the payments sector.

They built a test environment for local gift vouchers separate from any live commercial service, then ran through the entire process — using blockchain-based CBDC to top up local gift voucher tokens, process payments and settle transactions with merchants.

The blockchain infrastructure used Optimism, a layer-2 ecosystem designed to address Ethereum's transaction speed and cost limitations. The two companies tested a structure linking on-chain CBDC transfer records with transaction processing in existing payment systems.

Given that transaction data on a public blockchain can be exposed externally, the test also verified a structure that prevents sensitive payment information from being broadcast openly across the network.

The Korea Minting Corp. said the verification confirmed the technical feasibility of applying blockchain-based CBDC to existing public payment infrastructure such as local gift vouchers. However, the project was a technology verification conducted in a test environment, not the introduction of a commercial service.

"Our focus was less on the issuance of CBDC itself and more on verifying whether the top-up, payment and settlement processes work properly when connected to actual public payment infrastructure, and whether transaction data can be protected," Korea Minting Corp. President Seong Chang-hun said.

He added that the company would "continue to review the relevant technologies and service models to ensure that new digital payment instruments can be safely integrated with existing infrastructure, drawing on our experience operating public digital services such as local gift vouchers, digital Onuri gift vouchers and mobile identification."