The Bank of Korea has officially proposed allowing the issuance of won-based stablecoins, conditional on a 'unanimous' consent from related institutions such as the Bank of Korea, Financial Services Commission, and Ministry of Strategy and Finance. This demonstrates a willingness to place private stablecoin issuance within the institutional framework while thoroughly controlling it to prevent disrupting monetary and financial system stability.
According to the financial sector on the 6th, the Bank of Korea stated in a recently submitted report to the National Planning Committee that "stablecoin issuance should only be permitted when there is consensus among all related institutions." This is modeled after the SCRC (Stablecoin Certification Review Committee) structure of the US GENIUS Act, similar to how the Federal Reserve, Treasury Department, and FDIC unanimously approve non-bank stablecoin issuance.
Initially, the Bank of Korea intended to prioritize central bank digital currency (CBDC) deposit tokens, but it is interpreted as presenting a compromise proposal as the necessity of bank-sector stablecoins increased. However, it remains negative about allowing issuance by non-bank private entities.
The Bank of Korea is concerned about four major risks: if stablecoins circulate indiscriminately, they could △reduce monetary policy effectiveness △shrink banks' credit creation function △cause capital outflow and exchange rate volatility due to foreign currency-based stablecoin proliferation △transfer seigniorage to the private sector.
Experts assess that this proposal could be the first step in incorporating stablecoins into the institutional framework, but also point out that the unanimous consent requirement could be an obstacle to activation. A financial sector official stated, "As the possibility of CBDC and bank-sector stablecoins coexisting increases, meticulous coordination between the market and policy authorities is necessary."
