The Bank of Korea (BOK) has announced a temporary pause to its central bank digital currency program, reevaluating its approach to digital currency.
Suspension of CBDC Program
BOK has suspended preparations for the second phase of its digital currency testing, originally slated to begin in the fourth quarter of this year. The move also includes halting discussions with local banks.
New Government Focus on Stablecoins
Newly elected President Lee Jae Myung emphasizes stablecoins as a central focus of financial policy. He has proposed legislation allowing companies with equity as low as 500 million won ($370,000) to issue stablecoins based on the won. BOK Senior Deputy Governor Ryoo Sangdai remarked that stablecoin introduction should be gradual, supervised by registered institutions.
Digital Asset Market in South Korea
South Korea is a significant center for cryptocurrency activity, with over a third of its population actively participating in digital asset exchanges. Local cryptocurrency exchanges frequently see higher trading volumes than the Kospi and Kosdaq, the nation's primary stock indexes.
The pause in the CBDC program and the focus on stablecoins under new leadership reflects South Korea's effort to adapt to the rapidly changing financial landscape.
