BOK Halts Digital Currency Project As Stablecoins Gain Momentum

South Korea’s central bank has halted its digital currency pilot program, signaling diminishing enthusiasm for state-led digital currencies as President Lee Jae Myung’s drive to promote a broader private-sector role for stablecoins gains momentum.

The Bank of Korea has temporarily suspended preparations for the second phase of its pilot initiative testing program for a central bank digital currency, which had been scheduled for the fourth quarter, a BOK official told Bloomberg News.

The decision comes as the trajectory of the market for stablecoins has emerged as a key agenda item for President Lee, who took office earlier this month. ...