Bank of Korea Pauses CBDC Project Amid Stablecoin Focus

The Bank of Korea (BOK) has suspended its Central Bank Digital Currency (CBDC) initiative due to the South Korean government's emphasis on stablecoins. This decision has left participants in the Han River Project without a clear long-term strategy, prompting banks to shift their focus. Local reports indicate that the BOK informed banks that the second phase of CBDC testing would be halted. Initially, the first phase began in April, targeting 100,000 consumers, with plans to complete it by June 30. The second phase was set to explore peer-to-peer transfers and enhance payment methods. However, banks expressed concerns over high costs without a solid commercialization plan, leading to the project's suspension. They urged the BOK to create a task force to develop a long-term roadmap. As stablecoin discussions intensify, the BOK plans to reassess its stance on digital assets. Banks are now preparing for stablecoin issuance as legislation gains traction, with a focus on collaboration with fintech companies for scalability. Read more AI-generated news on: https://app.chaingpt.org/news