South Korea's Central Bank Halts CBDC Trials, Focuses on Stablecoins

Edited by: Yuliya Shumai

On June 30, 2025, the Bank of Korea (BOK) suspended its central bank digital currency (CBDC) trials. This shift prioritizes the development of won-backed stablecoins, aligning with the government's regulatory efforts. The BOK is awaiting government plans for stablecoins and their integration with a CBDC. (Source: ainvest.com, cointelegraph.com, reuters.com, cointelegraph.com, theblock.co)

In early June 2025, the ruling Democratic Party proposed the Digital Asset Basic Act. This aims to improve transparency and encourage competition in the cryptocurrency industry. The bill allows local companies to issue stablecoins with a minimum equity capital of 500 million won (approximately $368,000). (Source: cointelegraph.com)

Major South Korean banks plan to launch a won-backed stablecoin by 2026. BOK Governor Rhee Chang-yong supports won-based stablecoins but has concerns about managing foreign exchange. The shift from CBDC trials to stablecoin development signifies a strategic realignment in South Korea's digital currency landscape. (Source: reuters.com)

Sources

  • CoinDesk

  • Bank of Korea Pauses CBDC Trials as Banks Pivot to Stablecoins

  • South Korea's ruling party pushes forward with crypto bill

  • BOK chief says he is not against won-based stablecoins but has forex concerns

  • South Korea CBDC Trials On Hold As Banks Eye Stablecoins

  • Bank of Korea pauses CBDC project as local stablecoin adoption picks up speed: report

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