Bank of Korea Suspends CBDC Development as Government Advances Stablecoin Legislation

South Korea's central bank has abruptly halted its digital currency initiative, according to a Business Times report. The Bank of Korea informed participating commercial banks that discussions around the pilot program WOULD be paused indefinitely. This decision comes as President Lee Jae-myung's administration pushes forward with stablecoin-friendly policies.

The political shift follows President Lee's campaign promises to foster cryptocurrency innovation, including support for won-pegged stablecoins. The ruling Democratic Party recently submitted legislation that would authorize qualified firms to issue such assets. CBDCs face growing skepticism from crypto advocates who view them as instruments of financial surveillance.

Market observers note the irony in Seoul's simultaneous rejection of sovereign digital currency while embracing private stablecoins. The MOVE signals potential regulatory divergence between centralized and decentralized financial technologies in one of Asia's most crypto-active markets.