South Korea Puts CBDC Testing on Hold, Casting Uncertainty on Digital Won
South Korea’s central bank has paused its central bank digital currency (CBDC) testing project, raising fresh doubts about the future of a digital won. According to Bloomberg, the Bank of Korea (BoK) recently informed participating banks that it would halt discussions on the initiative for the time being.
A BoK official confirmed that preparations for the second phase of the pilot—originally slated for the fourth quarter of 2025—have also been suspended.
South Korea first began exploring a digital won in April 2020. It completed the first phase of simulation testing in December 2021, focusing on core functions such as creation, issuance, and distribution. However, the central bank has repeatedly stated that these tests do not indicate an imminent CBDC launch.
While South Korea steps back, other nations are moving forward with digital currencies. The Bahamas, Jamaica, and Nigeria have already introduced digital versions of their national currencies, marking significant progress in the global CBDC landscape.
Here is the status of country’s CBDC initiative, according to Atlantic Council:
| Status (most-to-least advanced) | Countries / currency-unions |
|---|---|
| Launched – live in nationwide use | Bahamas (Sand Dollar), Jamaica (Jam-Dex), Nigeria (eNaira) |
| Pilot – limited public roll-out or large-scale trials (≈ 44) | Antigua & Barbuda, Anguilla, Australia, Bahrain, Brazil (Drex), China (e-CNY), Dominica, Eastern Caribbean Union states†, European Central Bank (digital euro – 20 euro-area members), Grenada, Hong Kong SAR (e-HKD), India (digital rupee), Indonesia, Japan, Kazakhstan, Malaysia, Montserrat, Philippines, Russia (digital rouble), Saudi Arabia & UAE (mBridge/Aber), Singapore (Ubin+, Purpose-Bound Money), South Africa, South Korea (digital won), St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Sweden (e-krona), Thailand, Turkey (digital lira), Ukraine, Uruguay |
| Development/Proof-of-concept—coding or closed-door tests (≈ 22) | Cambodia (Bakong), Canada, Chile, Colombia, Dominican Republic, France, Ghana (e-Cedi), Israel, Italy (digital euro participant), Kazakhstan** (wholesale track), Kenya, Laos, Mexico, New Zealand, Norway (phase-4 e-kroner), Pakistan, Rwanda, Switzerland (Helvetia), Taiwan, Vietnam, Zimbabwe |
| Research / Feasibility study – policy & technical papers only (≈ 49) | Argentina, Bangladesh, Belgium, Botswana, Bulgaria, Egypt, Germany, Iran, Ireland, Jordan, Kuwait, Lebanon, Malaysia, Morocco, Netherlands, Peru, Qatar, Serbia, Spain, Sri Lanka, United Kingdom (digital pound), United States (digital dollar / Project Agorá) |
| Inactive / Cancelled – project shelved or formally ended (6) | Ecuador, Senegal, Curaçao & Sint Maarten, Denmark, Finland, Haiti |
South Korea Changes Emphasis to Stablecoins
The latest report reveals that South Korea’s decision to pause its digital currency testing stems from a growing emphasis on the stablecoin market—now a key priority for President Lee Jae Myung. The president has expressed strong support for companies developing stablecoins and has even proposed legislation that would allow firms with a minimum capital of just 500 million won (approximately USD 370,000) to issue stablecoins pegged to the Korean won.
BoK Senior Deputy Governor Ryoo Sang-dai confirmed last week that the introduction of stablecoins will proceed in phases, with regulated banks taking the lead in their rollout.
The move comes in the wake of past turbulence in the crypto space, particularly the collapse of the Terra stablecoin and its sister token Luna—an event that reportedly wiped out over half a trillion U.S. dollars from the global crypto market and significantly impacted South Korean investors.
South Korea is not alone in embracing stablecoins. In the United States, the growing legitimacy of such tokens is reflected in Circle’s public listing—the company behind the USDC stablecoin. Meanwhile, the U.S. Senate has passed the “Guiding and Establishing National Innovation for US Stablecoins” (GENIUS) Act. The bill is now under consideration in the House of Representatives, where further amendments may be introduced before it becomes law.