Bank of Korea is investigating by the private sector published by ‘Stablecoins’

The Bank of Korea is considering linking its deposit to a public blockchain, a movement that would position her supported digital currency supported by the state, in addition to stabile sector in the private sector that is active on open networks.

The tokens are “a kind of stablecoin published in the digital currency system built and managed by the Bank of Korea,” said the deputy governor Lee Jong-Gryeol in a statement Decrypt has confirmed with local sources.

“We are considering a direction in which it will co-exist within the entire digital currency system in combination with Stablecoins published by the private sector,” said the deputy governor in the 8th Blockchain Leaders Club that was held in the Lotte Hotel in Jung-Gu, Seoul on Monday.

Lee said that the initiative is being pursued from “a national perspective” and falls under the responsibility of the Bank of Korea as a money and target authority, according to Local News Outlet News1 Korea.

The proposal has raised questions about how such a hybrid system could function between jurisdictions.

“It is not clear how the hybrid model of Tokenized Deposito Plus private sector stablecoin will necessarily reach the explanation goal to protect monetary sovereignty,” said Peter Chung, research at the Singapore-based algorithmic crypto-trading agency Presto Labs, said Decrypt.

“Stablecoins on public block chains will be free to cross boundaries,” said Chung, and noticed that “the way to protect the monetary sovereignty is not by tinkering with token design or network architecture, but through noise monetary and fiscal policy.”

In the meantime, the deputy governor has also expressed concern about the growing use of global Stablecoins in South Korea, as a result of which their inflow called ‘the most relevant part’.

The official warned that its use as currency catchers could lead to violations of monetary sovereignty, weakened policy controls, financial instability and increased risks of money laundering.

In the first quarter of 2025, the crypto -fairs of South Korea won around $ 40.6 billion (56.8 trillion) to digital assets abroad.

Almost half, $ 19.5 billion (26.87 trillion won), was according to Stablecoins such as USDT and USDC, according to Maeil Business -Rant” A local news exit.

The issue also wins with the South Korean political leaders. Democratic Party of the presidential candidate of Korea, Lee Jae-Myung, has proposed to launch a won-backed stablecoin to reduce capital outlets and dependence on dollar-related tokens.

The Bank of Korea is also part of the Agora project, a cross-border settlement system with central banks from seven countries.

“It is designed so that the deposit smoking of a country cannot be used directly in another country,” said Lee.

The use of Stablecoin use remains worldwide. The total market capitalization is now $ 249.6 billion, an increase of 0.3% in the last 24 hours, per Coingecko data.

Published by Stacy Elliott.