South Korea Pauses CBDC Project, Focuses on Won-backed Stablecoins
South Korea has decided to pause its central bank digital currency (CBDC) project. The Bank of Korea has halted the second phase of its CBDC pilot, originally set for late 2025. This decision comes as regulators aim to speed up the launch of won-backed stablecoins.
According to a Bloomberg report, the central bank has informed participating banks that discussions on the CBDC will be put on hold. The shift in focus is due to the growing interest in regulating private stablecoins. The country’s regulators now prioritize the development of won-backed stablecoins.
Regulators believe that stablecoins could offer more immediate benefits.The CBDC pilot, known as “Project Han River,” was meant to test advanced features like peer-to-peer transactions and merchant payments.
