South Korea "abandoning CBDC" shifts to private stablecoins, Central Bank states: first wave to open banks, then allow private companies.

South Korea's central bank suspended the CBDC pilot and switched to a won-stablecoin dominated by commercial banks, highlighting the pull between costs and political realities. (Synopsis: South Korean media K Wave Media announced the establishment of bitcoin reserves: plans to buy $500 million BTC, KWM's stock price soared 135%) (Background supplement: South Korea's new president Lee Jae-myung, what is his campaign commitment to Crypto and AI? South Korea, once seen as the country most likely to be the first to land a CBDC, is now slamming on the brakes. On June 30, South Korea's central bank (BOK) informed the seven participating banks to suspend the second phase of the CBDC pilot, which was scheduled to start by the end of this year, and signaled that it would not rule out reducing the number of banks or shelving plans altogether. The market turned instantly, with KakaoPay down 7% and Hecto Financial down 5% in a single day, while KB Finance and Shinhan, which are related to the stablecoin concept, rose 0.8% and 1.6% respectively. CBDC pilot overspends, bank heat subsides The first phase of the Hanjiang Project mobilized 100,000 users and 100 merchants from April to June, including through 7-Eleven and Kakao Pay. However, high operating costs and uncertain profit models make it difficult for banks to continue. Seven banks recommended to BOK after internal evaluations to shift resources to the more commercially promising won stablecoin. According to reports, BOK has begun to think about the possibility of a long-term "pause". Stablecoins blessed by policy New President Lee Jae-myung campaigned for "open stablecoins", and the ruling party sent out a draft of the Basic Law on Digital Assets in early June, allowing companies with a capital of more than 500 million won (about $370,000) to apply for the issuance of stablecoins pegged to the won, and submit them to the Financial Commission (FSC) and the Financial Supervisory Service (FSS) to jointly supervise the reserve and redemption mechanism. The alliance of eight major commercial banks aims to launch the first products by the end of 2025 and early 2026. Vice President Yoo Sang-dae publicly stated: "Stablecoins are initially limited to bank issuance to ensure risk control." Financial sovereignty and dollar-dependent tug-of-war About one-third of South Korea's population invests in crypto assets, mostly using USDT, USDC and other US dollar stablecoins when trading, with a market share of up to 99%. Concerned about over-reliance on US dollar liquidity, the government hopes to use the Korean won stablecoin to cut into cross-border settlement, FinTech payments and P2P remittances, and adopt the path of "banks first, then gradually expand to non-banks", while encouraging innovation while locking in systemic risks. Challenges unsolved, public-private competition remains to be seen Despite a sharp policy turn, challenges remain. The transparency, real-time redemption capability and information disclosure of stablecoin reserves will test FSC and FSS; As for whether the CBDC will stop here, BOK has not yet let go, and the future does not rule out a "public-private" competition with bank stablecoins. Many Asia-Pacific countries are closely monitoring the progress of South Korea, and once the won stablecoin is successfully landed, the regional financial ecology may usher in a new round of reshuffle. South Korea's 180° shift from CBDCs to stablecoins highlights the decisive influence of commercial viability on policy choices. Whether the next step can strike a balance between innovation and stability will test the execution of governments, banks and regulators, and also provide a mirror for Asian countries. Related reports Satoshi Nakamoto became the 11th richest person in the world, surpassing Warren Buffett and Jensen Huang... Wallet sleeps for 16 yearsBitcoin is worth $120 billion Meta signed a 20-year nuclear power agreement" to package an entire nuclear reactor to support AI computing power, cooperate with American Constellation Energy Think Bitcoin consumes electricity? Research: AI power consumption surpasses BTC mining by the end of 2025 at the fastest (South Korea "abandons CBDC" to switch to private stablecoins, the central bank shouts: the first wave of open banks, and then release private companies" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".