South Korea Charts Cautious Path for Won-Based Stablecoin

Governor Lee Chang-yong announced the cautious introduction of a won-based stablecoin managed by banks, highlighting risks involved, during his address at South Korea’s National Assembly on October 19.

This cautious approach could reshape South Korea’s financial sector while reducing reliance on USD-pegged stablecoins, sparking interest among major banks and enhancing regulatory oversight.

South Korea Charts Cautious Path for Won-Based Stablecoin

Major South Korean banks, overseen by Lee Chang-yong, are considering a cautious introduction of a won-based stablecoin within a regulated framework.

In guidance from the Bank of Korea, a new stablecoin linked to the Korean won may debut with strict regulatory controls. Lee Chang-yong emphasizes a cautious start involving big banks first to ensure stability. Concerns about non-bank issuers’ systemic impact were voiced during a parliamentary meeting.

Community reactions reflect a blend of optimism and caution as regulatory frameworks evolve. Statements from banking sectors stress prudence with Lee urging a cautious path to avoid financial disruptions. The proposal sparks debate on integrating innovative technology with conventional banking for nationwide economic impact.

Global Implications and Expert Predictions for KRW Stablecoin

Did you know? The drive for launching domestic stablecoins like the KRW pegged variant is seen globally as nations strive for currency independence and reduced reliance on USD-pegged tokens.

Ethereum (ETH) currently experiences a notable 11.46% change in 24-hour trading volume, reflecting market volatility. Despite a slight drop of 1.64% in the last 24 hours, Ethereum saw a significant 67.87% increase over 60 days. Ethereum’s market cap stands at $510.75 billion as of August 19, 2025, according to CoinMarketCap.

Coincu research suggests an industrially impactful potential of implementing a bank-led KRW stablecoin. Experts predict a gradual shift towards domestic currency anchoring, likely influencing regional dominance while triggering regulatory adaptations within existing financial systems. The cautious pace could contribute to sustainable financial outcomes as digital currencies gain ground, notably within institutional circles.