The Bank of Korea suspends its digital currency project and negotiations with banks.

Gate News bot message, June 30, according to Bloomberg, the Central Bank of South Korea has suspended its digital currency testing project and informed participating banks that discussions related to the program will be paused.

Officials from the Central Bank of Korea indicated that preparations for the second phase of the Central Bank digital currency pilot program, originally scheduled to launch in the fourth quarter, have been suspended. This decision comes as the trends in the stablecoin market have become a significant agenda for South Korea's new President Lee Jae-myung. Lee Jae-myung is committed to allowing more companies to participate in stablecoin issuance, with a bill proposed by the ruling party permitting companies with equity as low as 500 million KRW (370,000 USD) to issue won-pegged stablecoins.

The senior deputy governor of the Bank of Korea, Ryoo Sangdai, stated last week that the launch of stablecoins should be conducted in phases, led by regulated banks, while implementing safeguards to prevent market disruption and protect consumers. South Korea has one of the world's most active digital asset markets, with more than a third of its population (about 18 million people) active in the digital asset market, and local cryptocurrency exchange trading volumes sometimes even exceeding those of the Korean stock market.