Banks Balk as South Korea Halts CBDC Tests Amid Stablecoin Push
South Korea’s CBDC pilot is facing delays as banks grow wary of costs and the government prioritizes stablecoin regulation, as reported by local media.
The Bank of Korea has postponed the second stage of its digital won trials, originally set for late 2024, after banks raised concerns over expenses. Seven lenders participated in the initial phase, but sources say enthusiasm has waned.
The pause coincides with President Lee Jae-myung’s push to authorize corporate-issued stablecoins. A proposed bill would let businesses mint won-backed tokens with 500 million won ($370,000) in capital—a move that could compete with a potential CBDC.
One banking executive noted that the central bank is reassessing its strategy, questioning whether a public digital currency remains viable given private-sector alternatives.
