The governor of the Bank of Korea, Rhee Chang-yong, shared his thoughts on the possibility of issuing stablecoins, discussing the latest legislative initiatives in this area.
Governor's Concerns Regarding Stablecoins
On June 18, 2025, the governor of South Korea's central bank, Rhee Chang-yong, stated that he is not against issuing won-pegged stablecoins but expressed concerns about managing capital flows. He noted, 'Issuing won-based stablecoin could make it easier to exchange them with a dollar stablecoin rather than working to reduce the use of dollar stablecoin. That in turn could increase demand for dollar stablecoin and make it difficult for us to manage forex.'
Proposal for the Digital Asset Basic Act
The Digital Asset Basic Act was proposed by the ruling party on June 10, 2025, under the newly elected pro-crypto president, Lee Jae Myung. This legislation aims to establish comprehensive regulations for digital assets, including stablecoins. According to the proposal, companies with at least 500 million won in equity will be allowed to issue stablecoins pegged to the national currency or other fiat currencies like the U.S. dollar. The proposed legislation also stipulates that stablecoin issuers must maintain a 1:1 fiat collateral in reserves held at licensed Korean banks to ensure convertibility and protect against insolvency.
Reasons for the Popularity of Stablecoins
Over time, the usage of stablecoins has surged to new heights. They are pegged to assets like the U.S. dollar or gold, making them trustworthy and attractive to traders. One key reason boosting the popularity of stablecoins is their real-world usage; stablecoins like USDT and USDC, among others, are now widely used in lending, borrowing, and trading with lower fees and faster settlement than traditional banking.
Thus, the governor's discussions on stablecoins and the new legislative initiatives in South Korea highlight the growing interest and complexities of regulating digital assets in the country.
