South Korea Puts Brakes on CBDC Plans — Here’s What to Know

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Share

Last updated: 

June 29, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

South Korea has put the brakes on its digital currency testing project, pausing preparations for the next phase just as stablecoins take on renewed political and market significance.

The Bank of Korea reportedly informed participating banks that it will temporarily halt discussions related to the second stage of its central bank digital currency pilot, which was originally slated to begin later this year.

A BOK official confirmed the decision to Bloomberg, citing the need for reassessment amid shifting priorities.

New President’s Stablecoin Push Prompts Central Bank Caution

The delay comes as newly elected President Lee Jae-myung places growing emphasis on stablecoins. Just weeks into office, Lee has proposed expanding the field of issuers by allowing companies with as little as 500m won, or about $370,000, in equity to issue won-based stablecoins.

His administration has signaled that stablecoins could play a major role in the country’s digital asset roadmap.

BOK officials appear cautious about moving too quickly. Senior Deputy Governor Ryoo Sang-dai recently stressed that any rollout of stablecoins should be gradual and bank-led, with clear consumer protections and measures to avoid market disruption.

Crypto Holdings Now Key Part of Personal Wealth for Millions in South Korea

Meanwhile, South Korea remains one of the world’s most active crypto markets. Over a third of the population, roughly 18m people, are involved in digital asset trading. On particularly busy days, local crypto exchange volumes have surpassed those of traditional equity markets such as the Kospi and Kosdaq.

A recent industry survey found that more than half of South Koreans aged 20 to 59 have experience trading crypto. Moreover, one in four currently hold digital coins. For those invested, crypto now makes up at least 14% of their total financial portfolios. In addition, many maintain wallets across several domestic exchanges.

Enthusiasm around digital assets has also spilled into the stock market. Shares of companies linked to the Bank of Korea’s CBDC initiative have rallied in recent weeks. Kakao Pay has more than doubled in value this month, while LG CNS surged nearly 70% before easing slightly.

Explore new destinations with ease using the Garmin Drive 52 GPS Navigator! With over 17,988 ratings and a solid 4.4/5-star rating, this GPS system has been a top choice for travelers. Over 500+ units were bought in the past month, all for only $144.99.

This 5″ GPS navigator comes with essential driver alerts, real-time travel data, and external memory storage. The simple on-screen menus and bright, easy-to-see maps make it easy to navigate wherever you are. Plus, it’s road trip-ready with The HISTORY Channel database, featuring notable historic sites and much more to enhance your journey.

Don’t miss out—get your hands on the Garmin Drive 52 today for a smoother ride ahead! Buy Now for $144.99 on Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!