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The Bank of Korea abandons CBDC pilot as fintech and banks compete for the stablecoin market
On August 14, the Bank of Korea abandoned its central bank digital currency pilot project and shifted towards the issuance of stablecoins by the private sector, prompting fintech companies and banks to accelerate their layouts. KakaoBank is considering entering the issuance and custody business, while a trading platform is collaborating with Naver Pay to develop a payment token to narrow the gap between local and global encryption price differences. However, due to the long-term restrictions on "onshore" rules for Korean won transactions, foreign institutions cannot directly exchange Korean won overseas, and the Korean won stablecoin can only be used for KYC addresses linked to Korea, which hinders cross-border settlement.
Analysis suggests that the Token lacks payment efficiency advantages under the local instant and free transfer system, and its main application may be limited to domestic scenarios.