South Korea Hits Pause on CBDCs as Stablecoins Surge – Why the Right Wallet Will Dominate Crypto’s Next Phase
South Korea’s central bank just slammed the brakes on its CBDC rollout—while private stablecoins are stealing the spotlight. Here’s what’s really driving the shift.
The CBDC Cold Feet: Seoul’s hesitation mirrors global central banks scrambling to keep up with decentralized finance. Meanwhile, algorithmic stablecoins are eating their lunch.
Wallet Wars Heat Up: With regulators playing catch-up, the real battle is over custody solutions. The winning wallet will need ironclad security, seamless fiat ramps, and compliance baked in—no small feat when the rules change weekly.
The Bottom Line: While bureaucrats debate monetary theory, crypto’s infrastructure race accelerates. Pro tip: Watch where the smart money flows—usually wherever governments aren’t looking.
South Korea: Cold Feet on CBDC, but Full Speed Ahead on Stablecoins
In a surprise move, the Bank of Korea halted the second phase of its CBDC pilot, planned for later this year, for further review.
The advanced pilot, involving peer-to-peer transfers and merchant payments, takes a back seat amid rising concern over cost, commercialization ambiguity, and regulatory readiness.
This policy change is strongly influenced by President Lee Jae‑myung’s administration, which won elections earlier in June based at least partly on crypto promises.
The new administration also fostered a regulatory framework enabling firms with modest capital (₩500 million ~ US$370K) to issue stablecoins under the Digital Asset Basic Act.
At a time when over a third of South Korea’s population – roughly 18M people – trade crypto, boosting stablecoins seems like a solid move.The decision to MOVE away from a CBDC is a bit more surprising. Still, with so many investors trading crypto daily, there’s a real desire to build and strengthen frameworks like the ones for stablecoins.
Other countries are making similar moves, though perhaps for more political reasons.
Hong Kong: Regulating Stablecoins to Reduce U.S. Dollar Dependence
Hong Kong is set to enforce its Stablecoins Ordinance starting August 1, 2025. Passed on May 21, the law mandates HKMA licensing for any fiat-referenced stablecoin issuer targeting the city’s residents.
The rigorous licensing requirements cover reserve holdings, fund segregation, redemption rights, and anti-money-laundering protocols.
Hong Kong Financial Secretary Paul Chan ties the initiative to China’s broader de‑dollarization strategy, highlighting stablecoins as pivotal for trade and cross-border payments in local currencies. In his words:‘Fintech has great potential in the application of cross-border trade, and the goal is to solve the long-standing pain points of slow and high cost of cross-border payment, and better serve the real economy in the field of payment… stablecoins are a cost-effective alternative to the traditional financial system and have the potential to revolutionize payments and capital market activities, including cross-border payments. The stablecoin legislation will… encourage issuers to extend the application of stablecoins to different scenarios, and help solve the real pain points of enterprises in business and people’s lives.’
Hong Kong anticipates local issuers and regulated institutions taking the lead, with limited retail uptake initially, but significant promise for cross-border institutional use.
And as retail interest grows, more and more investors are going to need a crypto wallet – the best kind of crypto wallet.
Best Wallet Token ($BEST) – Supercharge the Leading Web3 Wallet for the World Crypto Economy
takes two key ingredients for crypto wallet utility and creates something even more powerful.
The first element is a simple, powerful web3 wallet –With MPC and biometric security, the ability to set up multiple wallets, and a unique upcoming tokens hub to research and purchase hot crypto presales, Best Wallet app gives new and experienced crypto users everything they need to succeed in today’s crypto economy.
The $BEST token supercharges the entire ecosystem. Token holders gain:
Reduced transaction fees- Better staking returns
- Exclusive project access
- Governance rights
The ongoing presale has raised $13.6M so far. $BEST tokens are on sale for $0.025255, but our price prediction shows they could reach $0.05106175 by the end of 2026, delivering 102% gains for presale participants. Learn how to buy Best Wallet Token to avoid missing out.
What These Moves Signal
Both governments seek to balance private stablecoin innovation with preserving monetary policy control.
South Korea’s pivot reflects a pragmatic approach: redirecting momentum from costly and uncertain CBDC deployment toward a more agile, regulated stablecoin model.
Hong Kong’s strategy signifies a calculated expansion of its role in the global digital asset economy, linking stablecoin issuance to monetary liberalization and regional trade objectives, and supporting China’s broader political goals.
In each case, the success of stablecoin ambitions hinges on the dirty details of regulation, institutional participation, and financial market dynamics. And success means that everyone, not just major institutions, will want their own Web3 wallet.
As always, do your own research – this isn’t financial advice.
