Democratic Party Pushes Stablecoin Legislation as BOK Nominee Warms to Idea

South Korea’s Democratic Party is moving to revive stablecoin legislation, with its Digital Asset Task Force saying it will step up talks on creating a formal framework for the tokens.

The task force said at a National Assembly press conference on April 16 that it welcomed a shift in stance by Bank of Korea governor nominee Shin Hyun-song, Etoday reported. It said the debate should move beyond a simple clash between supporters and opponents and focus instead on institutional design. The group said discussions should now turn to how stablecoins would be introduced and operated in practice.

The response followed comments Shin made at his confirmation hearing on April 15. He acknowledged that he had previously held a negative view of stablecoins, but said a central bank chief should take account of a range of views to help develop the ecosystem. He also said won-denominated stablecoins could eventually play a complementary role in the monetary system.

During the hearing, Shin made clear he was taking a more open stance on stablecoins. He also laid out a framework in which central bank digital currencies, deposit tokens and stablecoins could coexist with separate roles. On issuance, he suggested a bank-led model as the default while indicating that fintech firms should not be excluded.

Debate over stablecoin legislation has long been deadlocked over who should be allowed to issue them. Financial authorities have favored a bank-led consortium, centering on a proposed rule requiring banks to hold a 51% stake, while the Democratic Party task force has argued that non-bank players should also be allowed to take the lead. The sides also remain split on whether issuance approvals should be made through a collective decision-making process or require unanimous consent.

It remains unclear whether Shin’s shift will translate into legislative progress. In written answers, he stuck to his earlier view that the system should remain centered on CBDCs and bank deposit tokens. There is also concern that debate in parliament could fall down the priority list as local elections approach.

Still, some politicians see the change in the BOK nominee’s stance as a potential turning point in the broader policy debate. The task force said it plans to work with relevant agencies to build a stable framework for won-denominated digital assets.