With the acceleration of the Korean won stablecoin's development under the president's support, the Bank of Korea has decided to postpone the pilot testing program for central bank digital currency (CBDC) and instead observe the legislative and developmental trends of stablecoins.
According to reports from Yonhap News Agency, the Bank of Korea has recently officially notified the major banks participating in the 'Han River CBDC Pilot Testing Program' that discussions regarding the second phase of the trial will be postponed.
The timing of this policy shift comes less than three months after the launch of the first phase of the 'Han River CBDC Pilot Testing Program', which allows 100,000 citizens to use 'Digital Korean Won' for consumption at specific partner merchants, with participation from seven major commercial banks in Korea. The first phase of the trial is expected to end by the end of June.
Yonhap News Agency quoted a senior bank official stating that the Bank of Korea has indicated that it will closely monitor the legislative progress of stablecoins, as it remains unclear how CBDCs, stablecoins, and bank deposit tokens will coexist.
The report also mentioned that participating in the CBDC trial has imposed a heavy financial burden on local banks, with each bank investing up to 5 billion won (approximately 3.7 million USD) in resources, particularly putting significant pressure on banks' finances in the absence of a concrete implementation blueprint.
At the same time, a significant policy shift has emerged in South Korean politics. New President Lee Jae Myung has expressed support for the issuance of stablecoins pegged to the Korean won, emphasizing the necessity of promoting the domestic stablecoin market to reduce the risk of capital outflow.
During the presidential election campaign, ruling party lawmaker Min Byeong-deok, who served as Lee Jae Myung's digital asset policy chief, quickly proposed a draft bill after the election, planning to establish a licensing system and compliance thresholds for issuing stablecoins, providing regulatory basis for the market.
So far, the two major tech giants in South Korea, Kakao and Naver, have applied for stablecoin trademarks through their own payment platforms. According to multiple South Korean media reports, eight major banks in South Korea, including those participating in the CBDC trial, are planning to jointly establish a joint venture to prepare for the issuance of a Korean won stablecoin.
This article is reprinted with authorization from: (Block客)
Original Title: (New President Supports 'Korean Won Stablecoin'! South Korea's 'CBDC Trial' Halts Less than 3 Months After Launch)
Original Author: Block Girl MEL
'Lee Jae Myung Supports Korean Won Stablecoin! South Korea CBDC Trial Halted, Is Stablecoin Better than CBDC?' This article was first published in 'Crypto City'