Bank of Korea defends bank-first stablecoin plan amid bill deadlock

The Bank of Korea has reaffirmed that won-denominated stablecoins should initially be issued through bank-led consortiums, reinforcing its position as South Korea’s digital asset legislation remains stalled.

According to local reports from Digital Asset and EDaily, the Bank of Korea (BOK) restated its position in documents submitted on Thursday to the National Assembly’s finance committee. 

The central bank argued that bank-led consortiums should receive priority when issuing won-backed stablecoins and also proposed creating a statutory policy body that would bring together financial regulators and other relevant government agencies to oversee the sector.

The latest submission continues a policy position the BOK has maintained for months as lawmakers work on South Korea’s Digital Asset Basic Act. The central bank has consistently argued that banks should retain a leading role in stablecoin issuance, saying existing banking oversight provides a stronger foundation for financial stability and consumer protection.

Deposit-token development remains on the agenda

Alongside its stablecoin recommendations, the BOK said it will continue expanding practical uses for deposit tokens during the second half of the year. According to the materials submitted to lawmakers, planned applications include government subsidy payments, public vouchers, electric vehicle charging infrastructure, and additional real-world payment services available to the general public. Deposit tokens are blockchain-based digital representations of commercial bank deposits.

The latest update follows earlier policy steps taken this year. In April, BOK Governor Hyun-Song Shin used his first public address to express support for both deposit tokens and central bank digital currencies (CBDCs).

During the same month, South Korea’s Ministry of Economy and Finance announced a pilot program that would use tokenized bank deposits for government operational spending, signaling continued institutional support for tokenized payment infrastructure.

Legislative disagreements continue to delay reforms

Even as development of deposit-token projects moves ahead, disagreement over stablecoin issuance remains one of the biggest obstacles facing South Korea’s digital asset legislation.

The BOK’s preference for bank-controlled issuers has divided policymakers, financial institutions, and parts of the digital asset industry. According to local reports, lawmakers have yet to reach agreement on whether stablecoins should be issued only through bank-led entities or whether non-bank companies should also be allowed to participate under the new framework.

The dispute extends beyond stablecoins. Members of the National Assembly are also considering how tokenized real-world assets (RWAs) and other digital assets should fit within South Korea’s existing financial regulations.

In April, the ruling Democratic Party proposed regulating both stablecoins and RWAs under current financial laws, but key questions surrounding issuer eligibility remained unresolved.

As legislative discussions continue, the government’s original timetable has slipped considerably. Earlier this year, the government told President Lee Jae-myung that it was targeting the first quarter of 2026 for the Digital Asset Basic Act.

According to local reports, that schedule has since been delayed by disruptions linked to the U.S.-Israeli war with Iran that began in late February, local elections, and the time required to reorganize committee structures within the National Assembly.

With the latest submission to lawmakers, the Bank of Korea has again made clear that it sees bank-led issuance and coordinated regulatory oversight as essential safeguards before won-backed stablecoins can enter wider circulation, while the broader legislative debate remains unresolved.