South Korea's central bank, the Bank of Korea (BOK), has temporarily halted its Central Bank Digital Currency (CBDC) pilot testing, known as 'Project Han River,' just before entering its second phase. This decision comes amidst rising concerns from participating banks and a growing focus on stablecoins within the financial industry.

The BOK's move signals a strategic shift, with a greater emphasis now placed on the potential of won-pegged stablecoins. Several leading Korean financial holding companies are in discussions to issue a Korean won-based stablecoin, with major banks reportedly planning a launch by late 2025 or early 2026. This initiative aligns with a broader legislative push to establish a clear regulatory structure for digital assets in South Korea, with President Lee Jae Myung making stablecoin regulation a priority.$BTC $WCT