Catenaa, Sunday, June 01, 2025-The Bank of Korea is weighing a plan to connect central bank-issued deposit tokens with public blockchain networks, signaling a major policy shift in its approach to digital currency innovation and financial sovereignty.
Deputy Governor Lee Jong-ryeol announced the proposal Tuesday at the Blockchain Leaders Club event in Seoul, calling the tokens a “type of stablecoin” designed to function within the central bank’s digital currency framework.
The initiative, according to Lee, aims to promote a sound and secure digital currency ecosystem under the bank’s oversight.
Lee emphasized that the tokens could potentially coexist with privately issued stablecoins in the broader crypto ecosystem but warned of rising risks.
He cited the influx of foreign stablecoins into the South Korean market as a growing concern, noting that they accounted for 47.3% of the nation’s crypto outflows in the first quarter of 2025 — equivalent to $19.1 billion.
The move comes amid rising political momentum in favor of a Korean won-backed stablecoin. Opposition leader Lee Jae-myung has proposed the launch of such an asset to reduce reliance on dollar-pegged stablecoins and curb the country’s $40.8 billion in annual crypto outflows.
The discussion also included support from ruling Democratic Party figures, who say institutionalizing stablecoins is vital to South Korea’s competitive standing in global digital finance.
