The Bank of Korea (BOK) has halted its central bank digital currency project, as reported by a financial newspaper.
The project had advanced to the pilot program development stage with participating banks.
The central bank informed the banks of a pause in discussions regarding the initiative, according to an unidentified BOK official.
South Korea’s President Lee Jae-myung, who took office on June 4, had engaged with the country’s cryptocurrency community during his election campaign, promising to support a won-based stablecoin market.
Earlier this month, Lee’s ruling party submitted a bill permitting qualified companies to issue stablecoins.
CDBCs are meant to serve as a digital counterpart to cash but face criticism, particularly among the crypto community, due to concerns about privacy, surveillance, and state control.
The Bank of Korea did not respond to inquiries for comment.
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