Bank of Korea backs bank-led won stablecoins, advances pilots

The Bank of Korea told the National Assembly finance committee that won-denominated stablecoins should be issued by bank-led firms and asked for priority issuance by bank-led consortiums and a formal policy body involving relevant agencies.

In materials submitted to the committee, the central bank recommended safeguards for stablecoin issuance, including banks taking lead roles through consortium arrangements and regulatory coordination under a statutory policy body to manage risks tied to pegged digital tokens denominated in Korean won.

The central bank outlined plans to run deposit-token pilots in the second half of the year. Pilots will test tokenized commercial bank deposits for direct government subsidy payments, electronic vouchers, payments at electric vehicle charging stations and other real-world transactions open to the public.

Deposit tokens are digital representations of commercial bank deposits, not central bank liabilities. The Ministry of Economy and Finance has started a pilot to use tokenized deposits for government operational spending.

BOK Governor Hyun-Song Shin earlier expressed support for deposit tokens and a central bank digital currency in public remarks made this year.

The central bank’s insistence on bank-led stablecoin issuance is a central issue in debates over the Digital Asset Basic Act. Lawmakers remain divided over who should be allowed to issue stablecoins and whether issuers must be majority-owned by banks or operate through bank-led consortiums.

Those disagreements have delayed the bill, which the government had aimed to complete by the first quarter of 2026. Officials cited an international conflict that began in late February, recent local elections and delays in reorganizing the Assembly’s committee structure as reasons for the slip in the timeline.

Industry groups have warned that a strict bank-led requirement could limit competition and slow innovation in digital asset services. The central bank has argued bank-led issuance would better protect financial stability and consumer deposits.

Regulators and lawmakers are continuing talks to reconcile positions on issuance and ownership. The central bank is pursuing a dual approach of conducting practical pilots for tokenized deposits while seeking regulatory arrangements that prioritize banks.