BOK Governor Rhee Says Won Stablecoin Innovation Important for Won Internationalization

Bank of Korea Governor Rhee Chang-yong said innovation in won-denominated stablecoins is an important element in the internationalization of the Korean currency. He added that the central bank would also closely examine interoperability across payment networks and the impact on financial stability.

According to industry officials on Oct. 13, Rhee made the remarks during a National Assembly audit session the previous day. Answering a question from Kim Tae-nyeon, a lawmaker of the Democratic Party, on the introduction of won stablecoins, Rhee said innovation was "also a very important element" alongside the country's ongoing efforts to internationalize the won. The Bank of Korea will move forward while reviewing interoperability, financial stability and the effects on monetary policy, he added.

Kim stressed that South Korea needs a national strategy to expand actual demand for won payments alongside the introduction of won stablecoins. "About 98% of the global stablecoin market is dollar-based," he said. "Even if won stablecoins are issued, they could end up serving only as a means of converting into dollar stablecoins if there are not enough use cases."

Kim also presented key tasks including setting safety standards for artificial intelligence agent payments, ensuring interoperability among digital payment networks, and establishing response systems for foreign exchange and financial stability. Different payment tools, including central bank digital currencies, deposit tokens and stablecoins, must be connected safely.

He also called for a strategy to expand actual demand for won-denominated payments alongside discussions on the introduction of won stablecoins. Kim urged the Bank of Korea to work with financial authorities, private companies and exporting companies to draw up a national digital payments strategy.