South Korea Explores Won Stablecoin as Bank of Korea Prioritizes Caution

• The Governor of the Bank of Korea, Rhee Chang-yong, emphasized that any move toward a central bank digital currency or stablecoin must be grounded in financial stability and not in short-term stimulus
• It was reported that the central bank is especially interested in use cases where private stablecoins may pose systemic risks
• Last week, during President Lee Jae‑myung’s early tenure, the ruling Democratic Party proposed the Digital Asset Basic Act, which would enable local companies to issue won-backed stablecoins

The Bank of Korea (BOK) is evaluating the potential launch of a Won-backed stablecoin with a cautious but forward-looking approach to digital currencies.

BOK’s Governor Rhee Chang-yong emphasized that any move toward a central bank digital currency (CBDC) or stablecoin must be grounded in financial stability and not in short-term stimulus. He also warned against blanket cash assistance as an economic strategy, suggesting it could distort market signals and increase fiscal risks.

The Central Banker’s Sobering Warning

Rhee said that the government should prioritize targeted assistance for the self-employed and small businesses.

He also st…

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