TL;DR:
- The Bank of Korea submitted a proposal to parliament requesting that only licensed commercial banks be allowed to issue won-denominated stablecoins.
- The draft includes 100% reserves in high-quality liquid assets and a consortium model requiring a minimum 51% bank control.
- Legislation remains stalled due to regulatory tensions. Banks such as KB Kookmin and Shinhan are preparing launches for late 2026.
The Bank of Korea presented a report before the National Assembly’s Strategy and Finance Committee in which it claimed exclusive control over the issuance of won-denominated stablecoins for licensed commercial banks, at least in an initial stage. The institution described these instruments as “monetary-type substitutes” and warned that their introduction must account for the risks to monetary policy, exchange rate stability and the financial system as a whole.
The BOK’s central argument is that banks already operate under strict requirements regarding capital, corporate governance and anti-money laundering compliance. That regulatory infrastructure, the institution contends, reduces the likelihood of an insolvency or liquidity crisis spreading into the real economy. Non-bank institutions could be incorporated at a later stage, but only after an assessment of their capacity to absorb losses and manage redemption risk in relation to stablecoins.
The Consortium Model and Its Tensions
One of the proposals under debate is a consortium scheme in which banks would be required to hold at least 51% of the capital of any stablecoin-issuing entity. The BOK also recommended 100% reserve backing in high-quality liquid assets, such as bank deposits or government bonds, to guarantee par redemption and prevent cascading effects. The institution also cited the United States GENIUS Act as a model for interagency supervision of stablecoins, involving the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation.
No Consensus on Stablecoins and the Imminence of a CBDC
However, the proposal surrounding stablecoins faces more than one source of resistance. The Financial Services Commission warned that overly restrictive rules could curb fintech innovation capacity and local competitiveness. Sangmin Seo, chairman of the Kaia DLT Foundation, noted that the argument in favor of bank-led issuance lacks “logical grounds” and that clearer rules for issuers would be sufficient to minimize risks.
The debate is framed within Phase 2 of the Digital Assets Basic Act, whose approval has been repeatedly delayed since October 2025. Meanwhile, the BOK is advancing pilot programs to issue a CBDC, and institutions such as KB Kookmin Bank, Shinhan Bank and Woori Bank are already preparing for possible launches toward the end of 2026, subject to regulatory definitions that remain unresolved for the time being.
