Stablecoin discussion intensifies as Bank of Korea Governor arranges meetings with banking leaders.
Bank of Korea Governor Set for Talks on Stablecoins amid Political Swing
Get ready for a hot topic on June 23: Bank of Korea's bigwigs will be huddled with commercial bank heads in Seoul, and stablecoin issuance is expected to grab the spotlight.
This gathering at the Bank of Korea headquarters is timely, given the buzz around South Korea's digital asset regulations.
According to insider chatter, stablecoins will likely reign supreme on the agenda, as political forces push for greater regulation.
Sangmin Seo, Head honcho of the Kaia DLT Foundation, shared his insights with Decrypt: "The Bank of Korea seems keen on playing the regulator game. Yet, their CBDC project remains in limbo without any confirmed real-world applications."
Last week, political heavyweight Min Byung-deok of the Democratic Party introduced the "Basic Digital Asset Act." This includes provisions for Korean won-pegged stablecoins and lighter capital requirements for issuers – potential green lights for fintech firms.
Amid this political shake-up, South Korea recently ushered in Lee Jae-myung as its new president, following a snap election sparked by the impeachment of the former head honcho.
Throughout his career, Lee has been an advocate for crypto, promising to give Bitcoin ETFs the green light and set up a stablecoin market to stem capital flight.
Recent data shows that South Korean crypto exchanges shifted $40.6 billion of digital assets offshore in Q1 2025, with half of that in stablecoins like USDT and USDC. Concerns abound around capital loss and monetary sovereignty.
Although Lee leans toward using stablecoins, the central bank has raised eyebrows, especially regarding non-bank issuers, citing potential hurdles during crises and interference with monetary policy.
Deputy Governor Lee Jong-ryeol revealed the bank is exploring blockchain-linked deposit tokens as a safer alternative. He also voiced concerns about foreign stablecoins, branding them the main worry in South Korea's digital asset landscape.
Edited by Sebastian Sinclair
Insights from Sangmin Seo added
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On June 23, discussions about digital assets, including stablecoins, will take center stage in a meeting between the Bank of Korea and commercial banks in Seoul.The buzz around South Korea's digital asset regulations makes this timely gathering at the Bank of Korea headquarters particularly important.Sangmin Seo, Head of the Kaia DLT Foundation, stated that the Bank of Korea appears interested in regulation, but their CBDC project remains unclear without confirmed real-world applications.Last week, Min Byung-deok, a political heavyweight from the Democratic Party, introduced the "Basic Digital Asset Act," which includes provisions for Korean won-pegged stablecoins and lighter capital requirements for issuers.South Korea's new President, Lee Jae-myung, has expressed support for crypto, pledging to allow Bitcoin ETFs and establish a stablecoin market.Recent data shows that South Korean crypto exchanges moved $40.6 billion of digital assets, including stablecoins, offshore in Q1 2025, raising concerns about capital loss and monetary sovereignty.Despite Lee's preference for stablecoins, the central bank has expressed concerns about non-bank issuers and potential hurdles during crises, as well as the role of foreign stablecoins in South Korea's digital asset landscape.To address these concerns, Deputy Governor Lee Jong-ryeol revealed that the bank is exploring blockchain-linked deposit tokens as a safer alternative.
