Bank of Korea Advocates Phased Rollout of Stablecoins
- Bank of Korea supports phased, bank-led stablecoin rollout, targeting financial regulation.
- South Korean banks form consortium for won-backed stablecoin.
- Aim to mitigate market disruption and strengthen consumer safety.
South Korea’s Bank of Korea supports a phased rollout of stablecoins, led by eight major commercial banks, aiming to reinforce financial regulation and reduce market risks.
The phased rollout intends to establish a financial safety net, addressing potential disruptions, while ensuring market stability and consumer protection remain priorities.
Bank of Korea’s Strategic Move Toward Stablecoins
Bank of Korea has endorsed a gradual, bank-led rollout of stablecoins. This marks a critical step toward digital currency regulation. The plan was announced in June 2025 at a press conference led by Deputy Governor Ryoo Sang-dae.
Eight major commercial banks in South Korea announced a consortium for a won-backed stablecoin. The initiative follows the Bank of Korea’s directive, suggesting that banks serve as initial issuers, backed by higher regulatory scrutiny.
Phased Rollout Targets Market Stability
Financial markets may see increased stability as the phased rollout aims to minimize disruptions. The focus on regulatory compliance seeks to address previous failures and establish a secure framework.
Potential impacts include changes in foreign exchange controls and handling of won-denominated tokens. While no direct effects on global cryptocurrencies are expected, the initiative focuses exclusively on the Korean won.
Overcoming Past Regulatory Barriers in South Korea
Past stablecoin efforts in South Korea, like Binance BKRW, struggled due to regulatory barriers. The current strategy leverages banks, aiming to address credibility and compliance challenges that affected earlier projects.
Experts note the potential for reduced liquidity risks. The bank-led model under strict regulation offers a path to success, differing from earlier, less regulated attempts in the digital currency space.
“It would be desirable to initially allow stablecoin issuance primarily through banks, which are subject to higher levels of financial regulation, and gradually expand it to the non-banking sector.” — Ryoo Sang-dae, Deputy Governor, Bank of Korea
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