South Korea's central bank has temporarily suspended trials of its central bank digital currency (CBDC) amid growing government support for stablecoins.
According to reports by Yonhap News Agency and The Chosun Daily, the Bank of Korea informed participating banks on Sunday that the second phase of testing, originally scheduled for the end of this year, would be postponed.
An executive from one of the seven banks involved said the pause allows regulators to assess how a CBDC could coexist with stablecoins.
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The move follows newly elected President Lee Jae-myung's campaign promises to encourage innovation in the cryptocurrency space, including the legalization of stablecoins pegged to the Korean won.