• BOK pushes for bank‑led consortium to issue won‑pegged stablecoins, citing US GENIUS Act. • Central bank warns private issuers could undermine monetary policy and FX stability. • Stablecoins seen as “currency‑like substitutes” requiring careful risk assessment. • BOK proposes statutory interagency body for issuer approvals and gradual expansion. • Concerns include bypassing FX regulations and violating banking‑commerce separation. • Programmable stablecoins could spur digital asset innovation, but safeguards are essential.
Article Summaries:
- The Bank of Korea (BOK) has reiterated its preference for commercial banks to lead the issuance of Korean won‑pegged stablecoins, citing concerns that privately issued tokens could undermine monetary policy, bypass foreign‑exchange rules, and pose financial‑stability risks. In a report to the National Assembly’s Strategy and Finance Committee, the BOK described stablecoins as “currency‑like substitutes” and urged that any rollout be tightly regulated, with banks-subject to capital, governance and compliance standards-first allowed to issue them. The BOK also proposed a bank‑centric consortium model and a statutory interagency body for cross‑regulatory oversight, citing the U.S. GENIUS Act as an example. The proposal comes amid stalled legislation, with lawmakers still debating issuer eligibility and control, and no firm timeline for a bill has been set.
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