<ul data-eligibleForWebStory="true"><li>South Korea's central bank, Bank of Korea (BoK), has halted its digital currency testing project, casting uncertainty over the country's plans for a central bank digital currency (CBDC).</li><li>The BoK has suspended discussions with participating banks and paused preparations for the second phase of the digital currency pilot planned for the fourth quarter of 2025.</li><li>While South Korea had completed the first phase of CBDC simulation testing in December 2021, the BoK clarified that this did not indicate an intention to launch a CBDC.</li><li>As South Korea's CBDC future becomes uncertain, the country's focus has shifted towards stablecoins, with President Lee Jae Myung emphasizing support for firms dealing with stablecoins and proposing a bill for companies to launch won-pegged stablecoins with low equity.</li><li>The article discusses South Korea's move towards stablecoins amidst the pause in CBDC testing, mentioning global developments in the stablecoin market and efforts by other countries like the United States to regulate stablecoins with bills such as the GENIUS Act.</li></ul>

South Korea Suspends Digital Won Project amid Stablecoin Push

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