Asian Stablecoin Adoption: Diverging Paths of South Korea and Japan

Global central banks are navigating the complex terrain of digital currency adoption at varying speeds. Asia presents a compelling case study, with South Korea and Japan emerging as contrasting models in the CBDC and stablecoin landscape.

South Korea's approach remains tightly controlled, favoring a closed CBDC system under central bank authority. Meanwhile, Japan champions an open framework, with the Bank of Japan explicitly limiting CBDC use to interbank settlements while allowing private sector stablecoins for commercial applications.

The recent passage of the GENIUS Act in the U.S. has intensified global discussions around stablecoin regulation. Both Asian nations are engaged in advanced policy debates about the appropriate role of private sector issuers and government oversight in this rapidly evolving market.