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 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.
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.
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.
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