According to a report by the Business Times on Monday, the Bank of Korea has put its central bank digital currency project on hold. The project was at an advanced stage, with a pilot program being developed in conjunction with participating banks.
The central bank has informed the banks that discussions related to the project will be paused, as stated by an unnamed official. This development comes after South Korea's President, Lee Jae-myung, expressed support for a stablecoin market based on the won during his election campaign. Recently, the ruling party, led by President Lee, has submitted a bill that would enable eligible companies to issue stablecoins. Central bank digital currencies are designed to serve as a digital equivalent of traditional fiat currency, but the concept has faced criticism, particularly from the crypto community, due to concerns over privacy, surveillance, and government control.
The Bank of Korea has not responded to requests for comment on this matter.