Bank Of Korea Sees Need For Won-Backed Stablecoin, according to Governor Rhee Chang-yong. On Wednesday, Rhee addressed the topic during a press conference at the central bank’s headquarters. He openly stated support for the idea of a Korean won-pegged stablecoin. He also clarified that he does not oppose its issuance. Moreover, he emphasized the importance of carefully managing its structure.
Rhee tackled questions about potential inflation risks from a won-based stablecoin. He explained that much depends on how the coin is issued. Additionally, he pointed out that asset backing would influence any monetary impact. “I do see the need for a won-backed stablecoin,” Rhee said. “Let me be clear — I am not against it.”
However, Rhee warned about possible foreign exchange challenges. He expressed concern over the coin’s effect on capital flow. “A won-based stablecoin could ease conversion to dollar-based stablecoins,” he noted. That shift could boost demand for foreign stablecoins. This, in turn, could complicate South Korea’s forex management.
The Democratic Party of Korea has pushed for non-banking issuers. They want to allow these institutions to issue a won-backed stablecoin. In response, Rhee urged caution regarding the wider financial ecosystem. “We must consider how this would affect banks’ profitability,” he said. He also stressed potential changes in the structure of payment services.
Bank Of Korea Sees Need For Won-Backed Stablecoin but also seeks a collaborative approach. Rhee said the central bank will coordinate with relevant ministries. These include the Ministry of Economy and Finance and the Financial Services Commission. He stressed that timely and proper measures will be established. The aim is to safeguard financial stability.
Meanwhile, the press conference also addressed inflation trends. Consumer prices rose 2.1 percent from January to May 2025. This remains slightly above the previous six months’ increase of 1.8 percent. Yet it stays close to the central bank’s 2 percent target. Rhee said prices remain elevated post-COVID-19.
He provided further inflation context. From 2021 to May 2025, consumer prices jumped 15.9 percent. Meanwhile, the cost of living index surged 19.1 percent. This index reflects essential goods that households rely on. The gap shows growing pressure on household budgets.
Bank Of Korea Sees Need For Won-Backed Stablecoin while also monitoring global economic shifts. Rhee addressed the impact of recent US tariffs. The central bank believes tariffs may reduce inflation in Korea. This could happen by lowering global raw material prices.
Moreover, China may redirect low-cost goods to Korea. This would create further deflationary pressures. However, uncertainties still surround these projections. Exchange rate fluctuations could counteract deflationary trends. Supply chain disruptions may also change expected outcomes.
The Bank of Korea emphasized caution. “Negotiation outcomes could still alter the scope of tariffs,” it said. Exchange rate shifts remain unpredictable. Global supply chains also face possible disruption. The central bank pledged to keep a close watch.
