Bank of Korea (BOK) has been actively advancing its initiatives in digital currency and stablecoin regulation. In June 2025, BOK established a Virtual Asset Committee to monitor the cryptocurrency market and collaborate with the government during the legislative process. This committee is tasked with addressing discussions related to stablecoins and virtual assets. Additionally, BOK renamed its Digital Currency Research Team to the Digital Currency Team, signaling a shift towards more practical digital currency initiatives.
In July 2025, BOK paused its Central Bank Digital Currency (CBDC) pilot program, known as "Project Han River," to focus on the development of won-backed stablecoins. This decision was influenced by the South Korean government's emphasis on stablecoin adoption and the associated legislative support.
Governor Lee Chang-yong expressed concerns about allowing non-bank institutions to issue stablecoins, warning that it could lead to currency chaos and disrupt the existing banking sector. He emphasized the need for careful integration to maintain financial stability.
In response to the growing interest in stablecoins, BOK is exploring the coexistence of private stablecoins and central bank digital currency tokens. This approach aims to address the risk of capital outflow and ensure monetary sovereignty.
These developments reflect BOK's proactive stance in shaping the future of digital currencies and stablecoin regulation in South Korea. The central bank continues to monitor global trends and collaborate with stakeholders to establish a secure and efficient digital financial ecosystem.