Bank of Korea Halts CBDC Project Amid Shift to Stablecoin Regulation

The Bank of Korea (BOK) has suspended its Central Bank Digital Currency (CBDC) initiative, known as the Han River Project, as South Korean lawmakers pivot toward stablecoin oversight. The decision leaves participating banks without a clear long-term roadmap, forcing them to recalibrate their strategies in the digital asset space.

Phase one of the CBDC pilot, involving seven banks and targeting 100,000 users, concluded in June. The planned second phase—intended to test peer-to-peer transfers and merchant payments—was abruptly halted after financial institutions protested the lack of a commercialization plan. "Excessive cost burdens without concrete implementation prospects" were cited as the primary concern.

Banks are now demanding the BOK establish a dedicated task force to outline post-test frameworks. The suspension underscores growing institutional skepticism toward CBDCs as stablecoins gain regulatory priority in key Asian markets.