The Bank of Korea has temporarily suspended its pilot project for testing a central bank digital currency (CBDC), known as the digital won, before the second phase, which is scheduled for the fourth quarter of 2025. This was reported by Bloomberg, citing a senior bank official. The decision is related to complaints from commercial banks about high costs and the lack of a clear plan for the commercial use of the CBDC. Instead, the regulator will focus on developing a regulatory framework for stablecoins tied to the Korean won.
According to Min Byung-dok, head of the Digital Assets Committee, South Korea risks falling behind in the area of stablecoins if it does not act quickly. The eight largest banks in the country, including KB Kookmin and Shinhan, have already launched an initiative to create a stablecoin. The Bank of Korea is also consulting with commercial banks to prepare regulatory frameworks.
This decision reflects global competition in the field of digital currencies, where stablecoins are gaining popularity. The suspension of the project may affect Korea's position in the digital race. Stay tuned for updates at #MiningUpdates
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