The Local Business Times newspaper recently reported that the Korean Bank (BOK) had interrupted its Central Bank (CBDC) digital currency project.
Before making this decision, the project had progressed at the stadium for the development of a pilot program with participating banks. However, the BOK finally decided that suspending it was the best course of action for the moment.
No pilot phase for the Korea CBDC project
According to the reportAn unidentified BOK official revealed that all discussions related to the CBDC initiative had been interrupted. The second series of tests, initially scheduled for later this year, will no longer take place. 7-Eleven, Inc., a leading convenience store chain, was one of the participating companies in experience.
According to the initial plan, customers could have used the CBDC to make payments at 7-Eleven from April 1 to June 30. During this phase, participants had to receive a 10% discount on all purchases. The objective was to assess the transaction speed, security and customer response before a large -scale potential deployment.
Following the suspension, all the parties involved, including the participating banks, were officially informed.
This decision comes in the middle of the growing support of the Korean government for local currency ecunines on a national digital currency.
A senior official of one of the seven banks planned to participate in the tests noted that the central bank wanted first to observe the government’s plans for stablecoins before determining whether a CBDC can coexist with such tokens.
South Korean banks provide for the launch of supported stablecoin won
Eight major South Korean banks have already gathered to launch a Stablecoin with a won point. Participating banks include KB Kookmin, Shinhan, Woori, Nonghyup, Bank Corporate, Suhyup, Citi Korea and SC First Bank.
They collaborate with the open blockchain and the Decentralized Identity Association (DID), as well as the Financial Settlement Institute, to advance this initiative.
Although the Korean bank is not opposed to stablecoins in principle, it has certain concerns.
Governor Rhee Chang-Yong expressed that stablecoins could facilitate exchange exchange in the US dollar, which could undermine the central bank’s capacity to effectively manage the ON.
Vice-government Ryoo Sangai also stressed that the deployment of stablecoins should be progressive and initially led by banks, taking into account their higher financial regulatory levels.
He underlined the concerns about potential systemic risks, declaring: “It would be desirable to allow the emission of stables of the reserve mainly through banks, which are subject to higher financial regulation levels and to gradually widen it to the non -banking sector.”
The deputy for South Korea presents the stablecoin invoice
In general, the StableCoin market begins to take shape and gain momentum, in particular after the introduction of Genius In the United States.
In a similar decision, South Korea has made a daring step towards the regulation of the stable sector in its jurisdiction. On June 10, the legislator of the Democratic Party Min Seok presented a new bill aimed at establishing a regulatory framework for Stablecoins.
In particular, the Digital Asset Basic Act bill includes a new license regime for Stablescoins. In the opinion of Seok, this bill will be crucial to help South Korea in Excel in the world digital economy.
More specifically, he has ensured that the new Stablecoin rule complies with the existing law in South Korea which governs cryptocurrencies.
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