South Korea Halts CBDC Pilot as Banks Pivot to Stablecoins, Fueling a New Wave of Private Issuance
South Korea’s central bank has suspended its planned second phase of digital won (CBDC) trials, shifting the country’s policy momentum firmly toward stablecoins. The sudden pause comes as commercial banks lose interest in the state-led digital currency project, redirecting resources toward private stablecoin initiatives, a trend reinforced by President Lee Jae-myung’s vocal support for crypto-friendly policies.