Bank of Korea 'suspends CBDC experiment'...Arbitrum: 'Introduction of stablecoins inevitable'

The Arbitrum Foundation (ARB) recently issued a statement regarding the Bank of Korea's suspension of its central bank digital currency (CBDC) experiment, saying that the introduction of stablecoins has become inevitable.

John Park, Head of Korea at the Arbitrum Foundation, told BloomingBit on the 10th, "Korea's temporary suspension of CBDC development is not a step back but a shift," adding, "Stablecoins are no longer an alien presence confined to the cryptocurrency ecosystem." John Park explained, "Stablecoins are gradually developing into instruments representing the trust of sovereign countries," also saying, "If there are no practical alternatives based on KRW, such as stablecoins, Korea may have no choice but to accept the risk of its monetary sovereignty being dependent on liquidity infrastructure led by other countries."

The Bank of Korea recently put a halt to its CBDC experiment, the 'Han River Project.' Originally, the Bank of Korea had planned to begin the second test of the Han River Project in the fourth quarter of this year. Regarding this, Lee Chang-yong, the governor of the Bank of Korea, stated at a press briefing on the same day, "(The Han River Project) is not a suspension, postponement, or abandonment, but a pause," and added, "If stablecoin issuance is allowed in non-banking sectors as well, a situation could be repeated where, as in the 19th century, private banks issued currency freely, causing confusion."

The Arbitrum Foundation maintains its position that the introduction of stablecoins is inevitable. John Park further noted, "We may now see decentralized issuance methods approved by regulators instead of centralized (currency) issuance," and added, "KRW stablecoins with a license will interact with public blockchains like Arbitrum to establish a more flexible financial system."