The Bank of Korea (BOK) has put a stop to its central bank digital currency (CBDC) initiative, as reported by the Business Times. This project had advanced to the point of collaborating with banks on pilot programs.

The halt comes in light of a recent stablecoin bill submitted by the ruling Democratic party, which aims to empower eligible companies to issue stablecoins. CBDCs serve as digital alternatives to cash, but they have faced scrutiny over concerns relating to privacy and state surveillance.

A confidential BOK official confirmed to the newspaper that discussions with banks regarding this initiative will be paused. “The project reached the pilot development stage before its suspension.”

Lee Jae-myung, the new president who took office on June 4th, previously garnered support from the crypto community during his campaign, making promises to bolster a won-based stablecoin marketplace.

The recent development comes amid continuing debates over the implications of CBDCs, especially concerning their potential impact on privacy and control over currency by governments.