South Korea Halts CBDC Project Amid Rising Bank Concerns

According to Foresight News, the Central Bank of South Korea has paused its Central Bank Digital Currency (CBDC) project ahead of the second round of testing. This decision comes in response to increasing complaints from banks involved in the pilot project and growing discussions about introducing a Korean won stablecoin. Currently, several banks, including KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Company, iM Bank, Suhyup, and K-Bank, are participating in projects focused on stablecoin issuance within the banking sector. These projects utilize open blockchain and DIDIA technology. Additionally, Busan Bank, Gyeongnam Bank, and Toss Bank are considering joining these initiatives. The suspension reflects the need to address the concerns raised by the participating banks and to further evaluate the potential integration of a stablecoin pegged to the Korean won. The outcome of these discussions and evaluations will likely influence the future direction of South Korea's digital currency initiatives.