Phase two of BOK’s CBDC test delayed over bank concerns
Banks wary as stablecoin debates intensify
Pause allows reevaluation of wholesale CBDC rollout
The Bank of Korea recently put a temporary stop on the rollout of its central bank digital currency (CBDC) right before its second testing phase. The move came after multiple complaints from participating banks, who raised concerns about operational risks and unclear regulatory frameworks. At the same time, discussions around developing won-based stablecoins gained momentum in both public and private forums.
Banks voice concerns
Several banks shared their unease with potential costs, cybersecurity challenges, and unclear guidelines around the wholesale model of the CBDC. Their feedback emphasized the need for more clarity on integration, settlement processes, and risk management before advancing to a wider test.
Rising stablecoin debate
As the CBDC plans hit turbulence, interest has grown in stablecoins pegged to the South Korean won. Private firms are exploring regulated stablecoin frameworks, citing greater flexibility and faster time-to-market compared to a CBDC. The BOK’s pause gives regulators space to assess how these stablecoins could complement or compete with a central-bank issued digital currency.
NEW: Bank of Korea temporarily suspends its CBDC project ahead of the second test due to increased complaints from participating banks and rising discussions about won-based stablecoins. pic.twitter.com/LbfLqXihZt
— Cointelegraph (@Cointelegraph) June 30, 2025
What happens now?
The BOK is using this pause to:
Conduct deeper consultations with banks to resolve technical and regulatory concerns.
Study the stablecoin landscape to determine whether a regulated won stablecoin could coexist alongside a CBDC.
Reassess the design and timeline for phase two testing to ensure a smooth, secure implementation.
Outlook ahead
With strong banking sector feedback and surged interest in stablecoins, the pause marks a critical turning point. The success of the CBDC project will depend on effective collaboration, clear regulation, and integration with broader digital currency strategies in Korea.
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