Bitaigen Research 
The Bank of Korea, in a report submitted to the National Assembly’s Strategy and Finance Committee, classifies a KRW‑linked stablecoin as a “currency‑like substitute.” The report states that, besides assessing the potential benefits of such tokens for the industry, policymakers must simultaneously consider the impact on monetary policy, foreign‑exchange stability, and overall financial‑system risk.
Controversy over the issuing entity
The report further warns that if a private institution were to issue the digital token on its own, it could weaken the central bank’s monetary‑policy effectiveness and introduce new foreign‑exchange and financial‑stability hazards. Accordingly, the central bank emphasizes that issuance rights should be granted first to commercial banks that meet capital, governance, and compliance standards; any expansion beyond the banking sector should be phased in only after a thorough risk assessment.
From a regulatory perspective, we unpack the logic behind the Bank of Korea’s insistence on a bank‑led KRW stablecoin, analyze the policy debate and risk‑mitigation framework, and help readers understand why the proposal has hit legislative roadblocks. We also explore the potential impact on the digital‑finance ecosystem and the signals it sends to market participants.
The central bank’s safeguard measures to mitigate stablecoin risk
To reduce the aforementioned risks, the central bank proposes a bank‑centric consortium model and envisions the creation of a statutory, cross‑departmental policy body responsible for coordinating approvals and supervision across regulators. The operational framework of this body draws inspiration from the United States’ GENIUS Act, which involves collaboration among the Treasury Department, the Federal Reserve, the Federal Deposit Insurance Corporation, and other agencies.
At the same time, the central bank notes that programmable stablecoins could spur innovation in digital assets and serve as a means of payment. The core of these structural safeguards is to ensure a transparent, compliant issuance process and to prevent regulatory blind spots through inter‑agency coordination.
Debate stalls the development of a broader stablecoin framework
At the legislative level, fierce disagreement persists over which type of institution should be eligible to issue a KRW‑pegged token and what degree of control banks should have over the issuing entity. On 25 November 2025, regulators failed to reach consensus on whether banks should hold a majority stake in the stablecoin issuer, causing the legislation originally slated for October to be postponed.
Kaia DLT Foundation chairperson Xu Xiangmin told Cointelegraph that the notion of “bank‑led issuance” lacks logical grounding and that only by establishing clearer rules for issuers can potential risks be minimized. On 15 December, lawmakers indicated that a solution was expected by January of the following year, but a concrete legislative timetable has not yet been officially announced.
At the time of publishing, Cointelegraph has sent an information request to the Bank of Korea and has not yet received a response.
The above summary outlines the Bank of Korea’s position in favor of a bank‑led KRW stablecoin issuance and the current stalemate affecting related legislation. For further details, stay tuned to Bitaigen’s (比特根) ongoing coverage.
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