The Financial institution of Korea’s push for the banking sector to steer the rollout of won-denominated stablecoins lacks logic, says Dr. Sangmin Web optimization, the chair of the Kaia DLT Basis.
In a report launched on Monday, the central financial institution argued that banks are already topic to strict laws, together with capital, overseas change, and Anti-Cash Laundering necessities, which might assist reduce any dangers related to introducing stablecoins to the nation.
On the similar time, the BOK needs a coverage consultative physique collectively made up of forex, overseas change, and monetary authorities to determine on issuer eligibility, volumes and different key issues.
Web optimization instructed Cointelegraph that whereas the central banks’ considerations about stablecoin dangers are comprehensible, its argument for banks main a rollout “appears to lack a logical basis.”
Clear guidelines for all is a greater method ahead: Web optimization
Web optimization argued that a greater answer can be to ascertain clear guidelines for stablecoin issuers that may “reduce financial dangers and foster innovation.”
He stated it could additionally permit each banking and non-banking establishments that meet these standards to “compete and exhibit their strengths.”
“It could be much more priceless if the Financial institution of Korea might present tips on how these dangers could be mitigated and what {qualifications} are required for an issuer to be thought to be reliable.”
In June, BOK deputy governor Ryoo Sangdai proposed that South Korean banks be the first issuers of stablecoins within the nation to make sure a security web, earlier than steadily increasing to different sectors.
Stablecoin yield ban on the desk too
The BOK additionally needs to ban curiosity funds on stablecoins, arguing that it might instantly compete with financial institution deposits and disrupt the sector, and has as a substitute pitched the commercialization of deposit tokens, digital tokens that characterize deposits in a financial institution or monetary establishment, to be pursued.
Web optimization stated a complete ban on stablecoin yield can be an extreme measure and will hurt and restrict adoption.
“Whereas I agree that stablecoins themselves shouldn’t embrace any yield-bearing options, I imagine it could be extreme to limit the technology of extra yield by means of using stablecoins,” he stated.
“Doing so would considerably restrict their utility and adoption; due to this fact, I believe permitting supplementary yield creation must be permitted.”
South Korea’s stablecoin market heating up
A minimum of eight main South Korean banks introduced plans in June to supply a stablecoin pegged to the South Korean received, with deliberate launches throughout late 2025 and early 2026.
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In the meantime, Naver Monetary, the fintech arm of South Korean tech conglomerate Naver, is reportedly shifting ahead with a plan to accumulate Dunamu, which operates the nation’s largest cryptocurrency change, Upbit, and plans to launch a Korean won-backed stablecoin undertaking as soon as the acquisition is full.
The crypto business in South Korea has benefited from a extra favorable surroundings following the election of President Lee Jae-myung in June, who has since pushed ahead with varied crypto-related legal guidelines, together with a invoice to legalize stablecoins.
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