South Korea Slams the Brakes on CBDC Rollout — Here’s Why It Matters

Seoul hits pause on its digital won experiment—just as the crypto world was placing bets.

The Backstory: South Korea's central bank quietly shelved its CBDC pilot after two years of testing. No fanfare, no post-mortem—just a bureaucratic shrug.

Behind the Decision: Insiders whisper about technical bottlenecks and private bank pushback. Meanwhile, commercial stablecoins keep eating their lunch.

Global Ripple Effect: This retreat leaves China's digital yuan as the only major Asian CBDC still standing. Tokyo and Singapore are watching—and recalculating.

The Irony: While regulators drag their feet, Korean retail traders keep funneling $3B/month into crypto ETFs. Some things never change.

Another case study in how legacy finance moves at tectonic speeds—while DeFi rebuilds the system in internet time.

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.

South Korea’s central bank halted its digital currency testing project, telling participating banks it will temporarily pause discussions related to the initiative https://t.co/TuBn6SLXvo

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.