Stablecoin issue must start with banks, says Bok Official

South Korea must enable banks to first give stabile-ins before they gradually expand permissions to non-bank sectors, said a senior official of the Central Bank on Tuesday, because the country promotes the crypto-friendly policy under President Lee Jae-Myung.

Bank of Korea Deputy Governor Ryoo Sang-Dai brought the message to the heads of large commercial banks during a meeting at the central bank’s head office, according to Yonhap NewsThe largest news agency in the country.

“It would be desirable to initially allow the issue of Stablecoin mainly through banks, which are subject to higher levels of financial regulations, and gradually expand to the non-banking sector,” said deputy governor Ryoo Sang-Dai Tuesday.

The approach comes as South Korea is struggling with enormous growth of digital assets trade as transactions streamed From $ 12.9 billion (17.59 trillion won) won in Q3 2024 to $ 42.4 billion (57.9 trillion won) in Q1 2025.

Almost half of all digital assets that were transferred abroad in the first quarter of 2025 – WORTH $ 19.5 billion – was in stablecoinsThe expressing of concern about capital outlets that threaten the monetary sovereignty of the nation.

“The goal is to establish a safety net, given the potential for market disruption or damage to the consumer,” said Sang-Dai.

Change the game

The deputy governor warned that although Stablecoins offer innovation potential, they “can shift the fundamental attitude that we have maintained about the liberalization of the foreign exchange and the internationalization of the Korean won.”

He also marked the concern about potential market disruption, financial instability and the need to consider models such as “narrow banking”, whereby institutions only provide payment services without loans.

Bank of Korea Governor Rhee Chang-Yong has also indicated support for stablecoins, while insisting on caution, according to one report by Korea Joongang Daily On Sunday.

“For clarity, won-backed stablecoins are necessary and [I] Do not disagree with the issue, “Rhee said during a press conference last Wednesday, but pointed to the need to accurately investigate their potential effects on currency fairs.

President Lee, who scann This month after a Snap election, Stablecoin Regulation made a priority.

His administration entered The Digital Asset Basic ACT, with which domestic companies with at least $ 366,749 (500 million) in capital can be allowed to publish won-backed stablecoins.

The Bank of Korea is also Explore a hybrid model Where the planned Deposit Tokens can exist together with the private sector Stablecoins on public block chains.

But some industry experts remain skeptical, with Peter Chung, head of research at Algorithmic Crypto -Handelsbureau Presto Labs, previously tell Decrypt It is “not clear” how to combine tokenized deposits and stablecoins in the private sector would really protect the monetary sovereignty.

Edited by Sebastian Sinclair