South Korea pauses CBDC tests as stablecoin fever hits banks
The Bank of Korea reportedly suspended its central bank digital currency trials as participating banks are tempted by the government’s promise to allow stablecoins.
South Korea’s central bank has reportedly postponed the testing of a central bank digital currency (CBDC) as the country’s government has increasingly aired support for local currency stablecoins.
On Sunday, the Bank of Korea told banks taking part in CBDC tests that started in April that it was temporarily suspending and postponing the second round of tests slated for later this year, local outlets the Yonhap News Agency and The Chosun Daily reported on Monday.
A senior official at one of the seven banks taking part in the tests told Yonhap that the central bank is waiting to see the government’s plans for stablecoins and how a CBDC would fit with such tokens.