South Korea plans slow rollout of stablecoins
Bank of Korea officials say stablecoins could disrupt markets and impact foreign exchange policy.
South Korea’s central bank wants stablecoins introduced slowly, starting with regulated commercial banks.
Deputy governor Ryoo Sangdai said banks offer the highest level of oversight and could act as a safety net, limiting risks to consumers and markets.
Expansion to the broader financial sector would follow only after initial stability is ensured.
Despite limited support, the Bank of Korea remains cautious. Officials warned that stablecoins could accelerate capital outflows and complicate foreign exchange policy. Governor Rhee Chang-yong raised concerns about managing a won-based stablecoin in global markets.
To counter risks, the central bank is advancing its digital currency. A CBDC pilot is set to end by 30 June, with future trials depending on legal clarity and bank coordination.
While South Korea moves carefully, countries like the UAE, Russia, and several African nations are rapidly embracing stablecoin development.
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