Local media reports say the South Korean Central Bank Digital Currency Project (CBDC) has been temporarily suspended due to differences in opinion between the financial authorities and the banking sector.
The Bank of Korea has chosen to temporarily suspend the second test phase of its initiative known as the “Hangan Project” as it is increasing pressure on financial entities facing high costs without a defined roadmap due to lack of a clear implementation plan.
One important factor behind the suspension was the growing concerns of banks about the high costs of the program. Some of the people involved argue that the plan does not have a defined strategy for departure to the market.
According to data from TrainingView, each of the seven banks that took part in the first phase of the test had invested in infrastructure and marketing of $3,000-6,000 million ($2.19-438 million).
The financial institutions also advocated for more active participation in the design of the project and proposed creating a collaborative team to fully review future plans, including realistic schedules and long-term goals.
Furthermore, they showed new evidence of that Additional technical and regulatory adjustments are requiredincluding implementation of a system for detecting suspicious operations and brain-brain control mechanisms.
Meanwhile, some banks have evaluated consortiums and established joint ventures to autonomously broadcast stable companies, already having a conversation with payment platforms, cryptocurrency exchanges and specialized companies, preparing legal frameworks that allow for the official distribution of these assets.
A senior commercial bank official declared: “The Bank of Korea’s explanation is that stablecoins laws are ongoing and it is not clear how they differ and how these assets can coexist with CBDCs.
“As the debate about stubcoin accelerates and the atmosphere changes in that direction, it appears they have changed their strategy too,” said another bank official, according to Yonghap News.
This situation occurs midway through the growth trends of CBDC development plans. According to research firms at the Atlantic Council, there are already more than 20 countries deactivate these projects.
In line with the progress and debate that has emerged in Korea, The US chose to ban the development and use of CBDC a few months ago in January Within that territory.
As reported by Cryptonotics, such a US measure was formalized through an executive order that is allegedly aimed at protecting the country’s financial stability, individual privacy and national sovereignty.
but, In other regions, such as Europe, central banks have expressed their intention to accelerate the development of CBDCs.shows global contrast with this type of assets.