Catenaa, Wednesday, July 02, 2025- South Korea’s central bank has paused its central bank digital currency (CBDC) pilot, citing the need for reassessment as President Lee Jae-myung pushes for broader stablecoin adoption.
The Bank of Korea informed participating banks that discussions for the next phase of the pilot would be temporarily suspended, halting momentum built over the past year.
The delay reflects a recalibration of national priorities under President Lee’s new administration. He has proposed allowing companies with as little as 500 million won (approximately $370,000) in equity to issue won-based stablecoins.
The move, intended to spur innovation and competition, marks a strategic shift away from a centralised CBDC model to a more market-driven digital asset framework.
Senior Deputy Governor Ryoo Sang-dai of the Bank of Korea emphasized caution, urging a gradual, bank-led rollout of stablecoins with strong consumer protections and systemic safeguards.
The central bank’s decision suggests regulatory alignment is lagging behind political momentum.
Despite the pause on CBDC development, digital assets remain deeply integrated in South Korean society. An estimated 18 million citizens, or more than a third of the population, are active in crypto markets.
A recent survey showed 25% of respondents hold digital assets, with crypto accounting for around 14% of their financial portfolios.
Investor excitement is also influencing equities. Companies tied to the BOK’s CBDC efforts have seen soaring valuations, including Kakao Pay and LG CNS, underscoring market optimism even amid policy uncertainty.
