Bank of Korea (BOK) Governor Lee Jang Yong has expressed concern about the issuance of winner-winning stubcoins by non-bank entities.
He shared his concerns at a press conference after BOK's Monetary Policy Committee decided to maintain the base rate at 2.50%.
Governor I'm worried about the future confusion
The topic of Stablecoins stands centrally in a variety of countries. Korea is no exception. However, despite the popularity of the idea, the Bank of Korea often urges caution on the issue.
So when Bock's governor raised his concerns at a press conference earlier on June 10, it didn't surprise many. According to him, if multiple non-banking institutions are allowed to issue winning stub coins, it could cause confusion on a scale not seen since the issuance of private currency in the 19th century.
“In these circumstances, monetary policy is difficult and there is the side effect of having to go through a process of returning to the central banking system again,” the governor said.
He is confident that if they allow them to indiscriminately issue stablecoins victory, it could clash with foreign exchange liberalization policies. But at the same time, if non-banks are allowed to process payment settlements, it will significantly change their profit structure.
He said the issue cannot be determined solely by the Bank of Korea and the direction cannot be determined until the head of the relevant ministries has made their decision.
Stablecoins debate is gathering pace in Korea
The governor's position on this subject reflects the ongoing tensions in South Korea's ridiculous approach.
Bok has in particular been cautious about stubcoins historically, which appear to prefer ridiculous deposits, and tokenized deposits are in direct contrast to current political momentum under President Lee Jae Myung's administration.
To regulate the issuance of stubcoins and increase transparency in the crypto industry, the South Korean ruling Democrats proposed the Digital Asset Basic Act on June 10, 2025. However, this could potentially allow non-bank entities to participate.
BOK reportedly decided to try a regulated sandbox approach. This allows you to experiment with new financial products in a regulated environment and adhere to existing regulations without sacrificing innovation.
Banks use sandboxes to facilitate testing of WON-based Stablecoin issuances. The initiative includes a consortium of banks, fintech companies and cryptocurrency exchanges, which may encourage collaboration across the financial ecosystem.
