South Korea has put the brakes on its digital foreign money testing venture, pausing preparations for the subsequent part simply as stablecoins tackle renewed political and market significance.
The Financial institution of Korea reportedly knowledgeable collaborating banks that it’s going to briefly halt discussions associated to the second stage of its central financial institution digital foreign money pilot, which was initially slated to start later this yr.
A BOK official confirmed the choice to Bloomberg, citing the necessity for reassessment amid shifting priorities.
New President’s Stablecoin Push Prompts Central Financial institution Warning
The delay comes as newly elected President Lee Jae-myung locations rising emphasis on stablecoins. Simply weeks into workplace, Lee has proposed increasing the sphere of issuers by permitting corporations with as little as 500m gained, or about $370,000, in fairness to situation won-based stablecoins.
South Korea’s central financial institution halted its digital foreign money testing venture, telling collaborating banks it’s going to briefly pause discussions associated to the initiative https://t.co/TuBn6SLXvo
— Bloomberg (@enterprise) June 30, 2025
His administration has signaled that stablecoins might play a significant position within the nation’s digital asset roadmap.
BOK officers seem cautious about shifting too rapidly. Senior Deputy Governor Ryoo Sang-dai not too long ago pressured that any rollout of stablecoins ought to be gradual and bank-led, with clear shopper protections and measures to keep away from market disruption.
Crypto Holdings Now Key A part of Private Wealth for Thousands and thousands in South Korea
In the meantime, South Korea stays one of many world’s most lively crypto markets. Over a 3rd of the inhabitants, roughly 18m folks, are concerned in digital asset buying and selling. On significantly busy days, native crypto change volumes have surpassed these of conventional fairness markets such because the Kospi and Kosdaq.
A current business survey discovered that greater than half of South Koreans aged 20 to 59 have expertise buying and selling crypto. Furthermore, one in 4 at present maintain digital cash. For these invested, crypto now makes up not less than 14% of their complete monetary portfolios. As well as, many preserve wallets throughout a number of home exchanges.
Enthusiasm round digital property has additionally spilled into the inventory market. Shares of corporations linked to the Financial institution of Korea’s CBDC initiative have rallied in current weeks. Kakao Pay has greater than doubled in worth this month, whereas LG CNS surged almost 70% earlier than easing barely.
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