The Bank of Korea has suspended its central bank digital currency (CBDC) trials as interest in stablecoins rises among participating banks. This decision follows the government's increasing support for local currency stablecoins. The central bank informed the seven participating banks that the planned second round of CBDC tests has been postponed. Banks expressed dissatisfaction with the high costs of the trials and the lack of clarity on the commercialization of the CBDC. Additionally, banks are now keen to focus on issuing their own stablecoins, as this offers a more promising path to financial benefit. Some South Korean banks are reportedly collaborating to launch a won-backed stablecoin by next year, further indicating a pivot from CBDCs. Shares of fintech companies saw mixed reactions following the news, with some stocks declining while others gained.

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