In a surprising yet cautious statement on June 18, 2025, the Governor of the Bank of Korea, Rhee Chang-yong, said he is “not against” the idea of private companies issuing won-pegged stablecoins. This marks a significant shift in sentiment from one of Asia’s most influential economies—and could reshape the digital currency landscape in the region.
But there’s a catch: foreign exchange (forex) risks.
Governor Rhee warned that allowing users to easily swap won-based stablecoins for dollar-based ones could put pressure on Korea’s forex reserves, distort capital controls, and destabilize the local currency.
“If stablecoins pegged to the won are exchanged for U.S. dollar stablecoins in bulk, it could impact our foreign exchange market,” Rhee noted at a press conference in Seoul"
Despite the caution, the government seems ready to move forward. Under President Lee Jae-myung, South Korea is preparing the Digital Asset Basic Act, which is expected to roll out later this year. The legislation would provide the first legal framework for digital assets and stablecoins, possibly opening the door for regulated won-pegged tokens.
Adding fuel to the momentum is the recent appointment of Kim Yong-beom, a former financial regulator with crypto industry ties, as the President’s policy chief—signaling a more innovation-friendly stance.
🌐 Why this matters:
Stablecoins pegged to national currencies like the won can enable faster payments, lower transaction costs, and greater digital financial inclusion.
If managed well, South Korea could become a regional leader in digital currency innovation—especially in competition with Japan, Singapore, and China’s digital yuan efforts.
However, if mishandled, these stablecoins could pose risks to monetary policy, capital flight, and macro-financial stability.
📣 TL;DR:
South Korea may soon allow won-based stablecoins—but only if they don’t threaten the country’s financial ecosystem. As regulations evolve, the world is watching.
🔁 Share if you think Asia is about to lead the next stablecoin wave!
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