EddieJayonCrypto
11 Jun 25
Bank of Korea Governor Rhee Chang-yong will meet major commercial bank heads on June 23 to discuss political pressure to allow won-based stablecoins. The meeting follows a proposed "Basic Digital Asset Act" by lawmaker Min Byung-deok, aiming to legalize stablecoins pegged to the Korean won and ease ...
Bank of Korea Governor Rhee Chang-yong is scheduled to meet with the heads of major commercial banks on June 23 to discuss the issuance of won-based stablecoins amid rising political pressure and regulatory debates. This meeting follows the introduction of the "Basic Digital Asset Act" by Democratic Party lawmaker Min Byung-deok, which aims to legalize won-pegged stablecoins and ease capital requirements for issuers, thereby opening the door for fintech firms to enter this space.
Newly elected President Lee Jae-myung, a known advocate for cryptocurrencies, supports legalizing spot Bitcoin ETFs and establishing a regulated stablecoin market. His administration envisions these measures as essential tools to prevent capital flight and maintain monetary sovereignty. This stance comes amid reports that South Korean crypto exchanges transferred $40.6 billion worth of digital assets abroad in the first quarter of 2025, with about half of those transfers conducted in stablecoins such as USDT and USDC, highlighting concerns about significant capital outflows.
Despite the political momentum favoring stablecoins, the Bank of Korea remains cautious about stablecoins issued by non-bank entities. The central bank fears these instruments could undermine monetary policy and trigger financial instability during times of crisis. Consequently, the Bank of Korea is exploring blockchain-linked deposit tokens as a more controlled alternative offering some benefits of digital assets but with more limited risk exposure.
Deputy Governor Lee Jong-ryeol has expressed particular concern over the growing presence of foreign stablecoins in South Korea’s digital asset ecosystem, describing them as "the most concerning part" due to their potential to disrupt the country's monetary system. As South Korea navigates these complex issues, the upcoming discussions between the central bank and commercial banks will be critical in shaping the nation’s digital finance regulatory framework and its broader approach to cryptocurrency innovation and control.