South Korea Pauses CBDCs, Stablecoins Heat Up: Here’s Why Best Wallet Wins the New Crypto Framework
South Korea has paused its central bank digital currency (CBDC) initiative, halting the second phase of its pilot program due to concerns over costs and regulatory readiness. The new government under President Lee Jae-myung is focusing on promoting domestic stablecoins, allowing firms with modest capital to issue them under the Digital Asset Basic Act. Hong Kong is implementing a Stablecoins Ordinance effective August 1, 2025, requiring licensing from the HKMA for fiat-referenced stablecoin issuers. This law includes strict regulations on reserve holdings and anti-money-laundering protocols. Both countries aim to balance private stablecoin innovation with monetary policy control, with Hong Kong's strategy aligning with broader political goals. The success of these stablecoin initiatives will depend on regulatory details and market dynamics, increasing the demand for crypto wallets among investors.
