South Korea Considers Linking Central Bank Digital Tokens to Public Blockchains

According to PANews, South Korea's central bank is actively exploring ways to integrate central bank-issued deposit tokens with public blockchain networks. The announcement came from Vice Governor Lee Jong-ryeol during the Blockchain Leaders Club event held on May 27.

Lee described deposit tokens as a form of stablecoin issued under the framework of the central bank's digital currency system. He emphasized that these tokens are designed to function similarly to stablecoins while maintaining the backing and oversight of a central authority.

In addition, Lee revealed that the Bank of Korea is evaluating a model in which central bank digital tokens can coexist alongside privately issued stablecoins. This hybrid approach aims to foster innovation and interoperability within the broader digital asset ecosystem.

The initiative signals a growing interest by South Korean authorities in balancing financial innovation with regulatory oversight, as they explore the evolving role of central bank digital currencies (CBDCs) in decentralized environments.