South Korean Central Bank Proposes Commercial Banks Lead Won Stablecoin Issuance Amid Legislative Delays

South Korean Central Bank Advocates Bank-Led Stablecoin Issuance

Recently, the South Korean central bank submitted a report proposing that only commercial banks should be allowed to issue won-pegged stablecoins. This move aims to enhance the stability and oversight of digital currencies through the existing banking system.

Joint Issuance and Regulatory Framework Proposal

The report also highlighted a collaborative issuance model led by commercial banks and recommended forming an interdepartmental regulatory coordination body. This idea draws inspiration from the U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation joint oversight framework established under the GENIUS Act.

Legislative Delays Hinder Progress

Despite repeated calls from the central bank to accelerate legislation, the legal framework surrounding stablecoins remains incomplete, with the legislative process currently at a standstill and drawing industry-wide attention.