Gyeonggi Province, South Korea, Suspends Stablecoin Application Research Project Pending Policy Clarification on the Digital Asset Basic Act and Related Policies

TechFlow reported on November 1 that, according to South Korean media outlet NexBlock, Gyeonggi Province has temporarily suspended its stablecoin adoption research project, primarily due to the need to further assess the Digital Asset Basic Act and the related policy and regulatory environment. The Gyeonggi provincial government emphasized that the project has not been canceled.

The research project was launched in early July this year to explore the use of stablecoins in local government payment systems, such as local currencies, consumer vouchers, and public subsidies, and plans to use technologies such as zero-knowledge proofs (ZK) and proof of reserves (PoR) to verify privacy protection, fund reserves, and prevention of duplicate payments.

Gyeonggi Province officials said that no substantive progress has been made since the project was launched, and that the first proof of concept (PoC) originally planned for August was not a timeline officially confirmed by the government. The timing of subsequent tests will be determined in consultation with the project implementer, and the research project originally scheduled to end in February 2027 may also be postponed.

Source: TechFlow