Bank of Korea Rejects Stablecoin Issuance

The Bank of Korea has ruled out the possibility of directly conducting stablecoin business and stated that this should be handled by private companies. This was announced by the Governor of the Bank of Korea, Hyun Song Shin, on October 12 during parliamentary hearings, noting that the central bank will continue to develop its institutional digital currency. During his speeches, Shin noted that stablecoins should be managed by private companies as they are designed for use in decentralized blockchain networks. Meanwhile, the Bank of Korea will maintain its role in discussions concerning the country's monetary system. Shin said, "It is appropriate for stablecoins to be managed by the private sector."

The Hangang project, also mentioned by the governor, differs from stablecoins: it combines institutional digital currency and deposit tokens issued by commercial banks. The Bank of Korea retains responsibility for interbank settlements, while commercial banks manage customer information. Shin emphasized that since 2023, the Bank of Korea has not considered creating a general-purpose retail central bank digital currency.

The governor noted that the discussion on stablecoin regulation in Korea continues, and private financial institutions are preparing blockchain-based services. In particular, in July, the HashKey group signed a memorandum of understanding with Kbank and BPMG to explore stablecoins pegged to the won in international payments and settlements. All this is happening against the backdrop of the upcoming trials for the Hangang project, which has already undergone initial testing in 2025. Shin also added that customer information will remain with commercial banks, while the Bank of Korea will conduct interbank settlements, maintaining the principles of user data protection.