30.06.2025 16:05

The Bank of Korea (BOK) has indefinitely shelved its Central Bank Digital Currency (CBDC) pilot program, halting further development and postponing the planned second phase of testing. This unexpected decision follows a shift in government policy toward supporting domestically issued stablecoins, raising questions about the future of a Korean CBDC.

Originally slated for later this year, the second phase would have involved a real-world trial with participating banks and businesses, including the convenience store chain 7-Eleven. Consumers were set to receive a 10% discount on purchases made using the CBDC between April 1st and June 30th, providing valuable data on transaction speeds, security, and user experience. However, these plans have been scrapped following the BOK's decision.

A BOK official, speaking anonymously, confirmed the complete cessation of all discussions surrounding the CBDC initiative. The decision to suspend the project has been communicated to all involved parties, including participating financial institutions. This action suggests a reevaluation of the CBDC's viability in light of alternative digital currency developments.

This strategic shift aligns with the Korean government's burgeoning support for domestically issued, won-pegged stablecoins. A senior official from one of the eight major South Korean banks preparing to launch such a stablecoin explained the central bank's hesitation, emphasizing a desire to assess the stablecoin initiative's trajectory before deciding on the feasibility of a concurrent CBDC. The BOK's decision highlights the evolving landscape of digital currencies and the intricate interplay between government policy and central banking initiatives. The focus has now clearly shifted towards observing the market impact of the upcoming stablecoin launch.