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The Bank of Korea, the central bank of South Korea, remains hesitant regarding proposals for the introduction of a won stablecoin, even after a recent discussion with Circle, the issuer of USD Coin (USDC).
According to the South Korean news outlet Newsway, unnamed executives from Circle have recently met with officials from the Bank of Korea and members of the National Assembly.
During these private meetings, the parties reportedly “shared perspectives” on stablecoins. Sources from the media outlet indicated they were not authorized to disclose “the primary agenda or subjects discussed” during the discussions.
Bank of Korea: Stablecoin Doubts
The report further noted that Circle executives are scheduled to meet with senior representatives from the Financial Services Commission (FSC), which is the country’s leading financial regulator.
USD Coin’s market cap over the past seven days. (Source: CoinMarketCap)
With a new administration now formulating its financial policies in South Korea following the election on June 3, active discussions regarding stablecoins are currently taking place, with “global companies closely monitoring the situation.”
President Lee Jae-myung has committed to introducing a KRW-pegged coin intended for business and international trade.
However, as trading of USDT and USDC surges on South Korean exchanges, some stakeholders believe that Seoul should permit financial institutions to utilize USD-pegged coins for settlements.
On June 10, Democratic Party lawmaker and key ally of Lee, Min Byung-deok, presented an updated version of his private member’s bill, referred to as the Basic Digital Asset Act.
The revised bill includes several provisions related to the adoption of stablecoins. The National Assembly conducted a public briefing session on the legislation on June 17.
North Korea’s Kim met Russia’s top security official, state media say https://t.co/AaXFjPmkYZ https://t.co/AaXFjPmkYZ
— Reuters World (@ReutersWorld) June 18, 2025
Governor Issues Caution
An unnamed executive from the domestic crypto sector informed Newsway:
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“Global crypto firms are closely observing developments in South Korea. Circle appears to be establishing connections with the National Assembly and financial regulators as it seeks to engage in the domestic market.”
The source suggested that the issuance of a KRW stablecoin is “still a considerable distance away,” adding: “We are still in the stage of exchanging opinions.”
However, Kukmin Ilbo reported that Bank of Korea Governor Lee Chang-yong continues to express skepticism regarding the stablecoin initiatives of Lee Jae-myung’s administration.
Tencent is reportedly considering acquiring a stake in South Korean game giant Nexon at 20 trillion won ($15 billion), a move that would further solidify the Chinese tech giant’s presence in the Korean cultural content market.https://t.co/wLjoikC57H
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) June 13, 2025
The BOK chief stated that he “does not oppose” the creation of a “won stablecoin.” Nevertheless, the governor raised concerns that such a coin could potentially heighten the demand for dollar-pegged stablecoins.
The governor elaborated:
“I believe won-pegged stablecoins are necessary, and I am not against their issuance. [However] if won stablecoins are introduced, it will facilitate their exchange for dollar stablecoins. This will increase the demand for dollar stablecoins, complicating our management of foreign exchange operations.”
Lee Chang-yong also noted that the adoption of stablecoins could negatively impact the profitability of commercial banks. He concluded:
“Once the Ministry of Strategy and Finance, the Financial Services Commission, and other relevant ministries have [reached a consensus], we plan to refine policies through inter-ministerial consultations.”
USDT Trading Volumes Rise
USDT trading volumes continue to rise on South Korean cryptocurrency exchange platforms. On June 18, Tether’s 24-hour volume reached $96,609,745, accounting for nearly 14% of all trades executed on the platform.
The top 10 coins by trading volume on Bithumb over the past 24 hours. (Source: CoinGecko)
This figure is almost double the 24-hour volume of Bitcoin (BTC) ($49,556,659). So-called kimchi coins with stablecoin-related project components – including StormX, fanC, and MEV – are also witnessing ongoing growth.
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