The Bank of Korea proposed the creation of a working group to establish more realistic plans.
There is confusion about how they could coexist a regulation of stablcoins and a CBDC.
The Central Bank digital currency project (CBDC) in South Korea has been temporarily suspended due to disagreements between monetary authorities and the banking sector, according to local media reports.
The Bank of Korea opted to temporarily pause the second test phase of its initiative, known as “Hangang Project”, due to the absence of a clear implementation plan and the growing pressure of financial entities, which face high costs without a defined roadmap.
One of the key factors behind the suspension was the growing concern of the banks for the high costs of the program. Several of those involved claim that the plan lacks a defined strategy for their departure to the market.
Each of the seven banks that participated in the first phase of tests would have invested in infrastructure and marketing between 3,000 and 6,000 million wones –quivalent to between 2.19 and 4.38 million dollars, according to TrainingView data.
Financial entities also claimed a more active participation in the design of the project and proposed the creation of a joint work team to fully review future plans, including a realistic schedule and long -term objectives.
In addition, they indicated that new evidence They would require additional technical and regulatory adjustmentsincluding the implementation of systems to detect suspicious operations and anti -brain control mechanisms.
Meanwhile, some banks are evaluating consortiums or creating joint companies to broadcast Stablecoins autonomously, and have already had conversations with payment platforms, cryptocurrency exchanges and specialized companies, preparing for a possible legal framework that allows the official circulation of these assets.
A senior official of a commercial bank declared: “The explanation of the Bank of Korea is that, given that the legislation on Stablecoins is in progress and it is not clear how they differ or how these assets can coexist with the CBDC, they will wait to see how the situation evolves.”
“As the discussion about the stablecoins accelerates and the atmosphere changes in that direction, it seems that they have also changed its strategy,” said another high bank official, according to Yonhap News.
This situation occurs in the middle of a growing trend of development plans of CBDC. There are already more than 20 countries that have these projects inactive, according to the research firm Atlantic Council.
In line with the advances and debates that occur in South Korea, The United States opted months ago, in January, for prohibiting the development and use of CBDC within its territory.
As Cryptonotics reported, such a measure of the United States was formalized through an executive order, in which it is alleged that the Government seeks to protect financial stability, individual privacy and national sovereignty of the country.
However, In other regions such as Europe, the Central Bank has expressed its intention to accelerate the development of a CBDCwhich shows global contrasts on this kind of assets.
