South Korea takes a CBDC break predicts that the stablecoins gain ground

Increased market penetration and the adoption of stablecoins have put a shock absorber in terms of the South Korean CBDC. The country applied brakes on its CBDC test program which has been taking place since April of this year following the resurgence of Stablecoin in the middle of political support.

The Bank of Korea (BOK) confirmed the current state of cases in a declaration given to Bloomberg on June 30, 2025, through a representative.

In addition, a main representative of one of the seven banks participating in the South Korean tests of the CBDC informed a local publication that the Central Bank retains itself until it sees the government’s stablecoin strategy and how CBDC could integrate.

The newly elected South Korean president Lee Jae-Myung has openly pleaded for stablecoins, and his administration reported that the stablecoins would fill the major shortcomings in the country’s financial landscape.

In his advocacy for Stablecoins, Jae-Myung proposed the eligibility of companies with reserves as low as 500M won ($ 370,000) to be able to issue stablecoins.

Just inside: South Korea stops in phase 2 of CBDC tests while banks turn to the stablescoins

Recently: the largest Korean bank deposits Stablecoin brands for the new consortium

– Cryptonary Pro (@ cryptonary_pr0) June 30, 2025

However, not everyone is satisfied with this rapid acceleration of the adoption of stablescoin in South Korea. BOK officials sounded the alarm, the main vice-governor Ryoo Sang-Dai warning industry players against moving too quickly.

He called for a gradual deployment of stablescoins led by the bank which takes into account the protection of consumers and other measures that will alleviate market disturbances.

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South Korean CBDC tests are on the point of collapse

The local publication said that banks did not want to continue the second half of the CBDC trials, as they disillusioned by the exorbitant cost of the program.

Banks have raised their concerns about this issue, declaring: “The costs are too high without a specific marketing plan.” In addition, they demanded a clear and long -term roadmap on this subject.

About 100,000 participants were involved in the first stage of the South Korean CBDC test race, which took place from April 1, 2025 to June 30, 2025, where they tested the CBDC payment infrastructure.

The second phase aimed to extend the number of merchants and to provide funds. However, the BOK plans to move the tests of the second half of this year at the start of next year while limiting the participation of financial institutions.

Interestingly, South Korean banks wish to issue their own stablecoins because there is a clearer marketing path that is more viable and financially beneficial. Recently, eight of the largest South Korean commercial banks joined the hands to emit stablecoin to support.

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South Koreans hold 14% of their investment in crypto

More than 18 million South Korean residents are involved in the cryptography trade, a significant increase resulting in crypto exchanges exceeding traditional stock markets such as Kospi and Kosdaq.

According to a recent industry survey, more than half of the South Koreans aged 20 to 59 exchanged Crypto, with one in four still holding digital assets. Many manage portfolios in several interior exchanges, with a crypto with at least 14% of their total portfolio.

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The South Korea position takes a CBDC break, the stablescoins that gain ground appeared first on 99Bitcoins.

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