Bank of Korea Chief Calls for Stronger Central Bank Role in Stablecoin Oversight

Bank of Korea (BOK) Governor Rhee Chang-yong reiterated the need to strengthen the central bank’s role in South Korea’s upcoming stablecoin regulatory framework, arguing that such digital instruments directly affect monetary policy.

Speaking at the National Assembly’s Strategy and Finance Committee audit on Oct. 20, Rhee responded to Democratic Party lawmaker Cho Seung-rae’s question by emphasizing, “While the Financial Services Commission currently oversees stablecoins under existing law, the Bank of Korea’s views must be strongly reflected, as these assets have a direct impact on monetary policy.”

Rhee drew a distinction between stablecoins and conventional payment services, saying, “Unlike bank- or card-based payment systems, stablecoins can independently function as both a means of payment and a store of value.” He warned that, unlike limited-use payment platforms, stablecoins’ broad usability gives them “the potential to act as substitutes for traditional currency.”

Citing the U.S. “Genius Act” as a model, Rhee called for institutional reforms that would enable the Bank of Korea to formally participate in stablecoin policymaking through a consensus-based framework.

He also noted that South Korea’s incomplete capital liberalization and restrictions on citizens’ overseas asset holdings make the potential introduction of a won-backed stablecoin particularly complex. “If a won-denominated stablecoin is approved, it could trigger structural shifts across the broader financial and monetary system,” he said.

Rhee’s remarks underscore the central bank’s cautious stance—acknowledging the potential benefits of a domestic stablecoin, yet urging a comprehensive review of its implications for foreign exchange controls, financial industry structure, and monetary stability.

His comments follow those of Financial Services Commission Chairman Lee Ok-won, who earlier told lawmakers that the government aims to submit a stablecoin regulation bill by year-end, signaling growing urgency among policymakers to establish a legal framework for digital assets.