The Bank of Korea has reaffirmed that won-denominated stablecoins should initially be issued through bank-led consortia, strengthening its position as South Korea’s digital asset legislation remains stalled.
Summary
- The Bank of Korea reaffirmed its support for banks to issue won-backed stablecoins.
- The central bank plans to expand deposit token pilots for payments and utilities.
- Disagreements over stablecoin rules continue to delay South Korea’s digital asset-based law.
According to local reports from Digital Asset and EDaily, the Bank of Korea (BOK) reiterated its position in documents submitted to the National Assembly’s Finance Committee on Thursday.
The central bank argued that bank-led consortia should be given priority when issuing won-backed stablecoins and also proposed creating a statutory policy body that would bring together financial regulators and other relevant government agencies to oversee the sector.
The latest submission continues a policy stance that the BOK has maintained for months as lawmakers work on South Korea’s basic digital assets law. The central bank has consistently maintained that banks should retain a leading role in stablecoin issuance, saying existing banking supervision provides a stronger foundation for financial stability and consumer protection.
Deposit token development remains on the agenda
Along with its stablecoin recommendations, the BOK said it will continue to expand the practical uses of deposit tokens in the second half of the year. According to documents submitted to lawmakers, planned applications include government grant payments, public vouchers, electric vehicle charging infrastructure and other 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 actions taken this year. In April, BOK Governor Hyun-Song Shin used his first public speech to express support for deposit tokens and central bank digital currencies (CBDCs).
During the same month, South Korea’s Ministry of Economy and Finance announced a pilot program that would use tokenized bank deposits for government operational spending, signaling continued institutional support for tokenized payment infrastructure.
Legislative disagreements continue to delay reforms
Even as the development of custodial token projects progresses, disagreements over the issuance of stablecoins remain one of the biggest obstacles facing South Korean digital asset legislation.
The BOK’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 through bank-led entities or whether non-bank companies should also be allowed to participate under the new framework.
The dispute extends beyond stablecoins. Members of the National Assembly are also considering how tokenized real-world assets (RWA) and other digital assets should fit into South Korea’s existing financial regulations.
In April, the ruling Democratic Party proposed regulating both stablecoins and RWAs under existing financial laws, but key questions regarding issuer eligibility remained unresolved.
As legislative discussions continue, the government’s original timetable has moved back significantly. Earlier this year, the government told President Lee Jae-myung that it was targeting the first quarter of 2026 for the Digital Assets Basic Law.
According to local reports, that timetable has since been delayed by disruptions related to the US-Israeli war with Iran that began in late February, local elections and the time required to reorganize committee structures within the National Assembly.
In its 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 wider circulation, while the broader legislative debate remains unresolved.
