The Future of the ‘Digital Won’ To Be Private, Not Public

• Bank of Korea suspends second phase of CBDC trials amid high costs and unclear commercialization plans.
• President Lee Jae-myung’s administration supports stablecoins backed by won with a new regulatory bill.
• Eight banks, including KB Kookmin and Shinhan, plan to issue a stablecoin by next year.

The Bank of Korea has suspended its central bank digital currency (CBDC) pilot program amid increased interest in private-sector stablecoins. The central bank began testing its CBDC in April, involving 100,000 participants who used the digital WON for payments. 

Notably, this first phase concluded today, June 30. The second phase, initially scheduled for Q4, 2025, aimed to expand usage to more merchants and support remittance features.

Related: South Korea’s Ruling Party Denies State-Backed Stablecoin Plans

Why has Korea’s CBDC testing been halted

The Bank of Korea informed participating banks that the second round would be postponed, according to local media reports. The Bank is now considering moving the next phase to early 2026 with a reduced number of participants. 

The move follows concerns raised by financial institutions over the cost of partic…

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