Bank of Korea Governor Endorses Won-Based Stablecoin Development

Bank of Korea Governor Rhee Chang-yong has publicly supported the development of a Korean won-pegged stablecoin, marking a significant shift in the central bank's stance. The endorsement comes amid mounting political pressure from South Korea's ruling Democratic Party, which seeks to legislate stablecoin issuance by non-banking institutions.

"I do see the need for a won-backed stablecoin. Let me be clear — I am not against it," Rhee stated during a press conference at the central bank's headquarters. His remarks highlight a cautious yet progressive approach to digital assets, acknowledging their potential while flagging risks to foreign exchange controls.

The governor warned that a won-based stablecoin could complicate forex management by facilitating conversions into dollar-pegged stablecoins. He also raised concerns about structural impacts on traditional banking sectors if payment and settlement functions migrate to non-bank issuers.