Stablecoins Take Priority As South Korea Pauses CBDC Test

As per a South Korean regional media outlet, the Central Bank of the nation has delayed the testing of CBDC (Central Bank Digital Currency), as the hype of the development and launch of in-house stablecoin is at its peak.

The South Korean Central Bank has informed the banks participating in the CBDC trial that it is delaying the second phase of testing of CBDC, expected to be held later this year.

While talking to Yonhap News Agency, a senior official of one of the seven banks taking part in the CBDC trial said that the central banks of the nation are waiting to see the government’s initiative to launch stablecoin, and how CBDC would fit with these tokens.

As per experts, the launch of stablecoins is one of the primary promises that Lee Jae-myung made during his election campaigns, and following his historic victory, he has shown a preference for cryptocurrencies.

The current president of South Korea has made several key promises to his crypto-supporting base. These include helping to form a Digital Asset Basic Act and allowing crypto investment for the National Pension Service.

He has also pledged to support the legalization of spot crypto ETFs, the launch of stablecoins, and the revision of banking rules for crypto exchanges to strengthen the regulatory framework.

Is South Korea sidelining the full-fledged launch of CBDC?

In an X post dated June 30, 2025, Pump(dot)Fun said, “ This pause in South Korea’s CBDC pilot reflects a strategic shift towards stablecoin expansion, aligning with global trends to prioritize stable, user-friendly digital currencies. It will be interesting to see how this impacts the country’s broader blockchain and digital finance ecosystem.”

After the victory of Lee Jae Myung as the president, the digital assets infrastructure has undergone several upgrades, and under his leadership, the nation is topping the list in the formation of crypto-favoring laws.

The government’s push for stablecoins legislation includes a bill allowing companies to issue tokens with a minimum capital of 500 million Korean won

Some people aware of the matter said that the Bank of Korea is re-evaluating how the central bank digital currency (CBDC) can integrate with the emerging stablecoin ecosystem. The evaluation comes amid growing government interest in launching regulated stablecoins through legislative support.

While the BOK continues to support CBDC development as a potential countermeasure to privately issued stablecoins, its immediate focus has shifted toward fostering a regulated stablecoin ecosystem, beginning with commercial banks.

How big is the South Korean crypto market?

Estimates suggest the South Korean cryptocurrency market will reach $823.5 million by the end of this year, down from $835.4 million the previous year.

In terms of market capitalization, the South Korean crypto market surged nearly 108 trillion won in the second half of 2024, with the trading reaching 7.3 trillion won and deposits at regional exchanges doubling to 10.7 trillion won.

Spherical Insights projects a strong 16.60% CAGR between 2025 and 2035, driven primarily by the surge in crypto mining activities and advancements in blockchain technology.

South Korea has 12.41 million crypto users in 2025 and is projected to cross 15 million by Q1 2026. Some firms also reported that crypto seems to be helping the nation recover from its debt and other financial burdens.