The central bank of South Korea has reportedly postponed the test of a Central Bank Digital Currency (CBDC) because the country’s government is increasing support for local currency stablecoins.
On Sunday, the Bank of Korea told banks engaged in CBDC tests It started in April This will temporarily suspend and postpone the second twist of trials that ended for the latter part of this year, the local outlets of the Yonhap news agency and the selected day -day reported In Monday.
An old officer at one of the seven banks engaged in the trials told Yonhap that the central bank was waiting to see government plans for stablecoins and how a CBDC would fit in such tokens.
The newly elected President Lee Jae-Myung has campaigned in a List of Crypto Promises.
His celebration Pass a bill Earlier this month would allow companies to issue tokens with a minimum equity capital of 500 million Korean wins ($ 370,000).
Banks are not satisfied with expensive CBDC project
An old banking officer said the second part of the CBDC tests was “on the side of the collapse” while the seven participating banks were dissatisfied with the cost of participation.
Participating banks have been reported to have told the Bank of Korea that the test is very expensive and dissatisfied that the Central Bank has not specified a commercialization plan for the CBDC.
The Bank of Korea is floating moving in the second half of the trials from late this year to the first half of next year and may limit the number of financial institutions engaged, said an unnamed banking officer in Yonhap.
The first phase of CBDC trials involved 100,000 participants who test payments using centrally released currency, running from April 1 to June 30 and the second stage will expand the number of merchants and bring remittances.
Korea banks like stablecoins
Banks have been reported to want to focus on the release of their own stablecoins, which seems to have a clearer financial path that benefits from tokens.
On Wednesday, it was reported that eight banks in South Korea are together To launch a winner supported by Stablecoin next year.
Related: 27% of Koreans aged 20-50 hold crypto, 70% more investment
Half of the banks that come together for Stablecoin – KB Kookmin, Shinhan, Woori and Nonghyup – also took part in the first stage of CBDC tests.
South Korea FinTech Stocks See Mixed Open
Shares with some South Korean Fintech companies fell Monday after the CBDC’s suspension of suspension and banks’ desire to focus on Stablecoins.
Shares in the mobile payment app Kakaopay Corp dropped 7% to 2 pm local time, while the firm Hecto Financial dropped around 5%.
The KB Financial Group, the parent company KB Kookmin, saw a 0.8% bump, while Shinhan reached 1.6% to this day.
Legal Panel: Crypto wants to overthrow banks, now they turn into the stablecoin fight
