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Seeking Alpha 2025-06-30 09:03:24

South Korea reportedly halts digital won project as focus shifts to stablecoins

South Korea reportedly halts digital won project as focus shifts to stablecoins

The Bank of Korea (BOK) has reportedly temporarily paused the second phase of its central bank digital currency (CBDC) pilot, amid rising interest in won-based stablecoins from both the National Assembly and the private sector. As reported by Bloomberg , the Bank of Korea told the participating banks that it has decided to pause talks on the initiative for now. The central bank initially planned to launch the second phase in the fourth quarter of 2025, but as the momentum around the legal framework for privately issued won-based stablecoins increases and the debate over their potential coexistence with CBDC continues, the BOK opted to pause further testing to minimize policy uncertainty, reports said. Following the decision, banks are expected to increase their focus on stablecoin development.

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