Bank Of Korea Halts CBDC Project As Lawmakers Focus On Stablecoin Regulation

Key Points

1. The Bank of Korea suspended the second phase of its CBDC testing, known as the Han River Project, due to concerns over excessive costs and lack of commercialization plans.

2. Banks involved in the project requested a clear long-term roadmap from the BOK, emphasizing the need for a 'CBDC General User Real-Korea' framework.

3. South Korean lawmakers are intensifying discussions on stablecoin regulation, with banks preparing for potential legislation in this area.

4. The BOK and commercial banks acknowledge that CBDCs, stablecoins, and deposit tokens can coexist, but the focus has shifted towards stablecoins for now.

5. The Han River Project may be reconsidered in 2026, with the possibility of resuming CBDC testing in the first half of that year.