### South Korea's Central Bank and Major Banks Collaborate on Gradual Stablecoin Rollout South Korea is taking significant steps towards the introduction of stablecoins, with the Bank of Korea (BOK) advocating for a cautious and phased approach. The BOK's governor, Ryoo Sang-dai, has proposed that commercial banks should be the primary issuers of stablecoins, which are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the Korean won. This initiative aims to reduce the country's reliance on the U.S. dollar and enhance its digital finance landscape. The plan is to gradually expand the issuance of stablecoins beyond banks to other sectors, ensuring a regulated and secure environment for digital assets [https://cointelegraph.com/news/south-korea-central-bank-gradual-stablecoin-rollout][https://cointelegraph.com/news/korean-banks-to-launch-won-pegged-stablecoin]. ### Structure of South Korea's Stablecoin Initiative 1. **Central Bank's Role**: The Bank of Korea is leading the initiative, emphasizing a gradual rollout of stablecoins starting with banks to mitigate risks associated with cryptocurrency adoption [https://decrypt.co/326876/stablecoin-issuance-should-begin-with-banks-bok-official]. 2. **Bank Collaboration**: Eight major South Korean banks have united to launch a won-pegged stablecoin by 2026, aiming to reduce dollar dependency and enhance the country's digital finance capabilities [https://cointelegraph.com/news/korean-banks-to-launch-won-pegged-stablecoin]. 3. **Regulatory Framework**: The BOK is focusing on establishing a robust regulatory framework to ensure market stability and consumer protection as the stablecoin ecosystem develops [https://www.indexbox.io/blog/bank-of-korea-explores-won-denominated-stablecoins]. 4. **Global Context**: This initiative aligns with global trends where countries are exploring local currency-pegged stablecoins to maintain financial sovereignty amid evolving regulatory landscapes [https://koreajoongangdaily.joins.com/news/2025-06-23/business/finance/Digital-won-on-the-horizon-as-Korea-joins-global-stablecoin-race]. ### Supporting Evidence and Data - **Timeline**: The stablecoin launch is expected to occur by 2026, with initial issuance through banks in 2025 [https://www.fxleaders.com/news/2025/06/25/south-koreas-top-8-banks-unite-to-launch-won-backed-stablecoin-in-2025]. - **Bank Participation**: The eight banks involved include some of the largest financial institutions in South Korea, indicating strong industry support for the initiative [https://www.livebitcoinnews.com/8-south-korean-banks-partner-up-to-launch-won-based-stablecoin]. - **Regulatory Focus**: The BOK's deputy governor has highlighted the importance of a phased approach to minimize risks and ensure a safety net for consumers as the country advances its crypto policies [https://www.channelnewsasia.com/business/bank-korea-deputy-chief-says-desirable-introduce-stablecoins-gradually-5200106]. ### Conclusion: A Strategic Move Towards Digital Finance In summary, South Korea's approach to stablecoin issuance is characterized by a **cautious and structured rollout** led by the Bank of Korea in collaboration with major banks. The key points are: 1. **Gradual Implementation**: The BOK advocates for a phased introduction, starting with banks to ensure regulatory compliance and risk management [https://coincentral.com/south-koreas-top-banks-unite-to-launch-won-based-stablecoin-by-2025]. 2. **Bank Collaboration**: Eight leading banks are set to launch a won-pegged stablecoin, aiming to enhance digital finance and reduce reliance on the U.S. dollar [https://www.coinspeaker.com/8-banks-in-korea-back-stablecoins-heres-what-to-expect]. 3. **Regulatory Assurance**: The initiative emphasizes the need for a robust regulatory framework to support the stablecoin ecosystem and protect consumers [https://regtechafrica.com/global-south-koreas-central-bank-open-to-won-based-stablecoin-cautions-on-forex-management-risks]. This strategic move positions South Korea to be a significant player in the global digital finance landscape while ensuring stability and security in its financial systems.