South Korea’s Central Bank Proposes Cautious Stablecoin Framework
The Bank of Korea (BOK) is pushing for a carefully structured stablecoin rollout, prioritizing banks as initial issuers before allowing broader participation.
Deputy Governor Ryoo Sangdai argued that commercial banks, due to their stringent regulatory oversight, should spearhead won-denominated stablecoins to safeguard financial stability.
“A gradual expansion from banks to non-banking institutions would create a necessary safety net,” Ryoo stated, highlighting concerns over market instability and consumer risks.
However, he cautioned that rapid adoption could strain forex policies and accelerate capital outflows, potentially forcing a rethink of Korea’s foreign exchange liberalization strategy.
Governor Rhee Chang-yong echoed these concerns, acknowledging the potential of a won-based stablecoin but stressing the need for robust forex controls.
