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Bank of Korea Pushes Bank-Led Stablecoins Amid Pilot Programs

Created at 9 Jul · 9:25 AM1 source↑ Market-relevant
IN SHORT

The Bank of Korea reiterated its preference for bank-led stablecoin issuance and is advancing deposit token pilots. This stance has created a policy standoff, contributing to delays in South Korea's digital asset bill, particularly concerning issuer rules.

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Key Numbers

first quarter of 2026target for digital asset bill

Who's Involved

Bank of Korea
Central bank advocating for bank-led stablecoin issuance
National Assembly's finance committee
Received BOK's materials on digital assets
Hyun-Song Shin
BOK Governor, previously supported deposit tokens and CBDCs
Ministry of Economy and Finance
Announced pilot for tokenized deposits
Lee Jae-myung
President, received timeline for digital asset bill

↳ Why This Matters

The Bank of Korea's firm stance on bank-led stablecoin issuance and its ongoing pilot programs for deposit tokens are critical to the development of South Korea's digital asset framework, potentially shaping regulatory approaches for stablecoins and central bank digital currencies in the region.

Key facts

  • The Bank of Korea advocates for bank-led consortiums to issue won-denominated stablecoins.
  • Deposit token pilots are being advanced by the central bank.
  • The BOK's position has contributed to delays in South Korea's digital asset bill.
  • The central bank plans to explore further deposit token use cases, including government subsidies and real-world transactions.
  • The debate over stablecoin issuer rules remains a key sticking point in the legislation.

The Bank of Korea (BOK) has reinforced its position that stablecoins denominated in South Korean won should primarily be issued by bank-led consortiums. This stance was communicated in materials submitted to the National Assembly's finance committee, according to local reports. The central bank is also moving forward with pilot programs for deposit tokens, which represent commercial bank deposits, and plans to expand their use cases in the latter half of the year. These include applications for government subsidy payments, vouchers, and electric vehicle charging infrastructure.

The BOK's insistence on bank-led structures for stablecoin issuers has created a policy deadlock, contributing to significant delays in the passage of South Korea's comprehensive digital asset bill. This disagreement over issuer rules has persisted for months, pitting the central bank's cautious approach against industry groups and other policymakers.

Despite proposals to integrate stablecoins and tokenized real-world assets into existing financial laws, the core issue of bank leadership in stablecoin issuance remains unresolved. The timeline for the bill, initially targeted for the first quarter of 2026, has slipped due to various political and geopolitical factors, including regional conflicts and committee reorganizations.

Frequently asked questions

The Bank of Korea advocates for stablecoins denominated in South Korean won to be issued primarily through bank-led consortiums.

Deposit tokens are digital representations of commercial bank deposits.

The bill is delayed due to disagreements over who should be allowed to issue stablecoins, with the Bank of Korea pushing for bank-led issuers.

What Happens Next

01BOK to continue developing deposit-token use cases in the second half of the year.
02Lawmakers to continue considering stablecoin issuer rules for the digital asset bill.

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Cadence

How It Developed

The Bank of Korea reiterated its call for bank-led stablecoin issuance.
The central bank is advancing deposit token pilots.
The BOK submitted materials to the National Assembly's finance committee.
The BOK's stance has divided policymakers and industry groups.
The central bank plans to continue developing deposit-token use cases in the second half of the year.
The BOK's comments add to a policy standoff slowing South Korea's Digital Asset Basic Act.
Key issues such as whether stablecoin issuers should be bank-led remain unresolved.

Sources

T1
Bank of Korea stands firm on bank-led stablecoin push as deposit token pilots advanceThe Bank of Korea reiterated its call for bank-led won stablecoin issuance while advancing deposit token pilots, as issuer rules remain a sticking point in South Korea’s digital asset bill.Cointelegraph

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