The South Korean central bank's originally scheduled second-phase digital won (CBDC) test in the second half of this year has reportedly been suspended. Sources indicate that with the new president strongly supporting stablecoin policies, banks' enthusiasm for CBDC has sharply declined, with market resources and attention quickly shifting towards privately-led stablecoin projects, casting uncertainty over the CBDC's future.
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ToggleCentral Bank Test Halted: High Costs and Unclear Business Plans Force Banks to Withdraw
According to Yonhap News, the South Korean central bank has recently notified the seven participating banks that the second-phase CBDC test is "temporarily postponed" without providing a specific timeline. Participating banks stated that not only are the test costs high, but the central bank has also not presented a clear commercialization plan, making it difficult for businesses to assess the real benefits of their investment.
[The rest of the translation follows the same professional and accurate approach, maintaining the original structure and meaning while translating to English.]Can South Korea's CBDC Continue to Move Forward?
The South Korean central bank originally hoped to promote digital won infrastructure through CBDC testing, but has hit the brakes under triple pressures of cost, policy, and industry trends.
Facing the rapidly forming industry consensus on stablecoins, whether CBDC still has space and necessity, and whether it will merge with private currencies in the future, will become a policy direction worth watching.
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PayPal CEO Alex Chriss stated in an interview on 6/28 that although stablecoin applications are gradually entering the mainstream, there are still many obstacles to adoption by US consumers, with the main application being more promising in "cross-border remittances". Despite this, Chriss emphasized that he remains optimistic about stablecoin applications and revealed that PayPal is encouraging user adoption through incentive mechanisms.
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