South Korea Halts CBDC Trials

Bank of Korea has temporarily suspended its central bank digital currency (CBDC) trials, reportedly due to the government’s increasing support for local currency stablecoins. Participating banks, finding the CBDC project expensive and lacking a clear commercialization plan, are also reportedly more interested in issuing their own stablecoins. This pause comes as newly elected President Lee Jae-myung pushes legislation to allow companies to issue won-backed stablecoins, shifting the focus of South Korea’s digital currency initiatives.