South Korea’s Central Bank Proposes Gradual Rollout of Won-Pegged Stablecoins

🇰🇷 Banks to Lead Initial Issuance

Bank of Korea’s Senior Deputy Governor Ryoo Sang‑dai recently emphasized that the introduction of a won-denominated stablecoin should begin with heavily regulated commercial banks. This initial, controlled approach aims to establish a safety net and assess financial-market impacts before extending issuance to non-bank entities.

Key Quote from Ryoo:

“It is desirable to first allow banks, which are under a high level of regulations, to issue won-based stablecoins and gradually expand to the non‑bank sector”.

Central Bank’s Concerns Over Foreign Exchange & Capital Flows

Despite supporting innovation, Bank Governor Rhee Chang‑yong highlighted risks related to foreign exchange management. He cautioned that won-based stablecoins could facilitate conversions to dollar-backed equivalents, potentially accelerating capital outflows and undermining forex stability.

Legal Backdrop: Digital Asset Basic Act

On June 10, South Korea’s ruling Democratic Party advanced the Digital Asset Basic Act. The legislation would permit entities with at least $368,000 in equity to issue stablecoins, provided they maintain sufficient reserves and secure regulatory approval.

CBDC as a Strategic Alternative

Ryoo confirmed that the Bank of Korea remains committed to its central bank digital currency (CBDC) program. The first pilot—with the BIS and domestic regulators—runs through June 30. A second phase will be planned in partnership with major banks once policy and regulation solidify.

Global Context: Stablecoin Expansion Worldwide

South Korea is part of a broader global wave exploring stablecoin adoption:

• Visa teamed with Yellow Card Financial to promote stablecoins across Africa.

• Russia and Abu Dhabi are advancing national stablecoin initiatives .