Central Bank of Korea maintains position on banking sector-controlled stablecoin initiatives amid deposit token trial expansion
South Korea's central bank has reinforced its stance favoring bank-controlled won stablecoin creation while moving forward with deposit token trial programs, even as debates over issuer qualifications continue to hinder the nation's digital asset legislation.
South Korea's central banking institution, the Bank of Korea (BOK), has reinforced its position that stablecoins pegged to the won currency should initially be launched through consortiums led by traditional banking institutions.
Based on domestic news coverage from Digital Asset and EDaily, the monetary authority delivered these statements through documentation presented on Thursday to the finance committee of the National Assembly. News sources in the region indicated that the BOK advocated for protective measures, encompassing preferential issuance rights for bank-led consortiums alongside the establishment of a legally mandated policy organization that would include appropriate regulatory agencies.
These recent statements strengthen the BOK's sustained campaign spanning multiple months to maintain won stablecoin creation within bank-controlled frameworks. The monetary authority's position has created divisions among lawmakers and business organizations and has been a contributing factor to postponements in South Korea's legislation governing digital assets.
The BOK additionally indicated its intention to advance the development of deposit-token applications throughout the year's second half, encompassing assistance for government subsidy disbursements, voucher programs, infrastructure for electric vehicle charging stations and expanded everyday transactions accessible to the broader population. Deposit tokens function as digital representations of deposits held at commercial banking institutions.
During April, BOK Governor Hyun-Song Shin voiced his backing for deposit tokens alongside central bank digital currencies (CBDCs) during his initial public remarks, concurrent with South Korea's Ministry of Economy and Finance revealing a trial program to utilize tokenized deposits for governmental operational expenditures.
BOK's stablecoin stance keeps bill debate alive
The BOK's most recent statements contribute to an ongoing policy impasse that has impeded advancement on South Korea's Digital Asset Basic Act. The legislative proposal had experienced repeated delays stemming from disagreements regarding which entities should receive authorization to create stablecoins, with the BOK advocating for banks to maintain controlling ownership stakes in stablecoin-issuing entities.
The ongoing debate has persisted while legislators evaluate how stablecoins, tokenized real-world assets (RWAs) alongside other digital assets should be incorporated into South Korea's regulatory frameworks. During April, the governing Democratic Party put forward a proposal to place stablecoins and RWAs within the scope of current financial legislation. Notwithstanding this development, critical questions including whether stablecoin-issuing entities should operate under bank leadership have remained without resolution.
The legislative timetable, which government officials informed President Lee Jae-myung in January they targeted for completion by the opening quarter of 2026, has subsequently been pushed back due to the US-Israeli war with Iran that commenced in late February, local electoral contests, and postponements in restructuring the Assembly's committee organization.