Bank of Korea Plans Bank-Led Consortium for Won Stablecoin
The Bank of Korea has unveiled a strategic plan to issue a Won stablecoin via a bank-led consortium model. Lee Byung-mok, director of the central bank’s Payment & Settlement Systems Department, proposes limiting initial issuance to regulated banks to ensure compliance, maintain monetary policy control, and mitigate systemic risks. By adopting a phased stablecoin regulation framework, the Won stablecoin project aims to prevent large tech firms from operating as banks by issuing unregulated digital currency. The consortium will gradually onboard non-bank participants under strict oversight. Aimed at preserving financial stability and enhancing consumer protection, the Won stablecoin initiative underscores South Korea’s cautious yet innovative stance on digital currency.
Neutral
The Bank of Korea’s plan for a Won stablecoin via a regulated, bank-led consortium is primarily a regulatory and infrastructure development rather than a direct market-moving event. Past announcements of central bank digital currency (CBDC) pilots, such as China’s Digital Yuan, have had limited immediate impact on broad cryptocurrency prices but improved overall institutional confidence in digital currencies. In the short term, traders are unlikely to shift positions based on this stablecoin, as it will not trade freely like public cryptocurrencies. Over the long term, the framework may enhance market stability by providing a reliable digital settlement asset, reducing reliance on private stablecoins and potentially narrowing spreads. Therefore, the immediate trading impact is neutral, though it could foster gradual growth in regulated digital assets.