South Korea’s CBDC Trials Stumble as Banks Push Back Over Costs

South Korea’s digital currency project is in jeopardy after participating banks protested the high costs, prompting the central bank to postpone further testing.

The Bank of Korea announced a temporary halt to its CBDC pilot, originally set to expand later this year. Sources say the seven participating lenders grew frustrated with the financial burden, with one executive declaring the initiative “on the verge of collapse.”

The delay also comes as the government moves to authorize stablecoins, fulfilling a campaign promise by President Lee Jae-myung. A new bill would allow companies to issue won-linked stablecoins with 500 million won ($370,000) in capital—potentially reducing the need for a CBDC.