South Korea responds to President Lee Jae-myung's campaign promise by suspending CBDC testing and focusing on stablecoins.

According to Gate News bot and Cointelegraph, the Central Bank of South Korea has postponed the testing of the Central Bank Digital Currency (CBDC), as the government of the country is increasingly intensifying its support for local stablecoins.

According to South Korean media reports on Monday, the Bank of Korea notified banks participating in the CBDC test in April last Sunday that it would temporarily suspend and postpone the second round of testing originally scheduled for later this year.

A senior official from one of the seven banks participating in the test told the Korean News Agency that the Central Bank is observing the government’s stablecoin plan and how the CBDC aligns with such tokens.

The newly elected president Lee Jae-myung proposed a series of cryptocurrency commitments during his campaign, including allowing the issuance of stablecoins, which are crypto tokens that track the prices of currencies such as the Korean won.

His political party proposed a bill earlier this month that allows companies to issue such tokens, with a minimum capital of 500 million Korean Won (370,000 USD).