Bank of Korea Pauses CBDC Project as Korean Banks Accelerate Stablecoin Push

On June 30, the Maeil Business Newspaper reported that the Bank of Korea (BOK) has temporarily paused its Central Bank Digital Currency (CBDC) project ahead of the second phase of testing. This decision was made to minimize uncertainty as private-sector discussions on the introduction and regulation of won-based stablecoins have rapidly gained traction. The BOK’s move reflects growing concerns over whether a central bank digital currency and privately issued stablecoins can effectively coexist.

In response, Korean banks are now expected to accelerate their efforts to develop and issue won-based stablecoins. Currently, nine major banks, including KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK, iM Bank, Suhyup, and K-Bank, are actively participating in the Open Blockchain and DID Association (OBDIA), which is leading stablecoin development within the banking sector.

Eight Korean Banks Form Joint Venture to Issue Won-Based Stablecoin

This growing focus on stablecoins builds upon efforts already underway just days earlier. On June 25, eight major domestic commercial banks, including KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, K Bank, and iM Bank, revealed plans to form a joint venture to issue a won-linked stablecoin. The initiative is being developed in cooperation with the Open Blockchain and DID Association and the Financial Supervisory Service.

The move reflects the banks’ shared aim to counter the growing dominance of dollar-based stablecoins in the global financial system and secure their position within the evolving digital asset landscape. This marks the first time Korean banks are entering the digital asset space through a consortium model.

27% of Koreans Aged 20-50 Invest in Crypto, Long-Term Investment on the Rise

This institutional push aligns with broader trends in crypto adoption among the Korean public. According to a report by Hana Financial Group Research Institute on June 29, 27% of Koreans aged 20 to 50 hold crypto assets, which account for an average of 14% of their total financial assets. Among them, the 40s age group holds the largest proportion, reaching 31%.

The report also noted that 70% of respondents plan to further increase their crypto investments in the future, driven primarily by growth potential, portfolio diversification, and optimization of savings structures. Additionally, the study highlighted a shift among Korean investors from short-term speculation to dollar-cost averaging and medium-term holdings.