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Bank of Korea Advocates for Bank-Issued Stablecoins to Mitigate Financial Risks

Bank of Korea Advocates for Bank-Issued Stablecoins to Mitigate Financial Risks

Author:

Global Cryptocurrency

Published:

2025-10-28 11:51:01

22

3

BTCCSquare news:

The Bank of Korea (BOK) has called for a bank-led model for stablecoin issuance, warning that privately issued won-pegged tokens could destabilize financial systems. In a 140-page report, the central bank highlighted the risks of unbacked redemption promises, framing them as private agreements rather than institutional guarantees.

Regulators are preparing to submit the second phase of the VIRTUAL Asset User Protection Act, mirroring U.S. moves to ban interest payments on stablecoins. The BOK emphasized that while stablecoins offer economic potential, their unchecked growth could replicate historical monetary failures.

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