The Bank of Korea reiterated that won-denominated stablecoins should initially be issued through bank-led consortiums, strengthening its position as digital asset legislation remains stalled in South Korea.
summary
- The Bank of Korea reaffirmed its support for the issuance of won-backed stablecoins led by the bank.
- The central bank plans to expand token deposit programs for payments and public services.
- Disagreements over stablecoin rules continue to delay South Korea’s digital assets statute.
According to local reports from Digital assets and DailyThe Bank of Korea reaffirmed its position in documents submitted Thursday to the National Assembly’s Finance Committee.
The central bank argued that bank-led consortia should have priority when issuing won-backed stablecoins, and also proposed creating a political-legal body bringing together financial regulators and other relevant government agencies to oversee the sector.
The latest filing continues a policy stance that the Bank of Korea has maintained for months as lawmakers work on South Korea’s digital assets basic law. The central bank has consistently argued that banks should retain a leading role in issuing stablecoins, saying that existing banking supervision provides a stronger foundation for financial stability and consumer protection.
The development of deposit tokens is still on the agenda
Along with its recommendations on stablecoins, the Bank of Korea said it will continue to expand practical uses for deposit tokens during the second half of the year. According to materials submitted to lawmakers, planned applications include government subsidy payments, public vouchers, electric vehicle charging infrastructure, and additional real-world payment services available to the general public. Deposit tokens are blockchain-based digital representations of commercial bank deposits.
The latest update follows previous policy steps taken this year. In April, the Governor of the Bank of Korea, Hyun Sung Shin, used his first public speech Express support For both deposit tokens and central bank digital currencies (CBDCs).
During the same month, South Korea’s Ministry of Economy and Finance announced a pilot program using tokenized bank deposits for government operational spending, signaling continued institutional support for tokenized payment infrastructure.
Legislative disputes continue to delay reforms
Even as the development of deposit token projects continues, Disagreement Issuing stablecoins remains one of the biggest hurdles facing digital asset legislation in South Korea.
The Bank of Korea’s preference for bank-controlled issuers has divided policymakers, financial institutions and parts of the digital assets industry. According to local reports, lawmakers have not yet reached an agreement on whether stablecoins should be issued only by bank-led entities or whether non-bank companies should also be allowed to participate in the new framework.
The dispute extends beyond stablecoins. National Assembly members are also considering how tokenized real-world assets (RWAs) and other digital assets fit into South Korea’s current financial regulations.
In April, the ruling Democratic Party proposed regulating both stablecoins and RWAs under existing financial laws, but key questions surrounding issuer eligibility remained unresolved.
As legislative discussions continued, the government’s original timeline was significantly pushed back. Earlier this year, the government told President Lee Jae-myung that it was targeting the first quarter of 2026 Basic law of digital assets.
According to local reports, this timeline has since been postponed due to unrest related to the US-Israel war with Iran that began in late February, local elections, and the time needed to reorganize committee structures within the National Assembly.
With the latest submission to lawmakers, the Bank of Korea once again made clear that it views bank-led issuance and coordinated regulatory oversight as essential safeguards before won-backed stablecoins can enter broader trading, while the broader legislative debate remains unresolved.
