The Bank of Korea explores the coexistence mechanism of private stablecoins and central bank digital currency tokens to address the risk of capital outflow

ChainCatcher news, according to Decrypt, South Korea's central bank vice governor Lee Jung-ryeol stated at the Seoul Blockchain Leaders Summit that they are considering issuing central bank deposit tokens on a public blockchain, in conjunction with private stablecoins, to build a digital currency system. This move aims to address the impact of large-scale outflows of stablecoins on monetary sovereignty and financial stability—by the first quarter of 2025, the scale of stablecoins transferred overseas by South Korean crypto exchanges reached $19.5 billion, accounting for nearly half of the total outflow of digital assets of $40.6 billion during the same period.

Lee Jung-ryeol mentioned that the plan needs to balance regulation and innovation from a "national perspective," emphasizing the central bank's role as a monetary management institution. However, industry experts pointed out that a hybrid model may not effectively maintain monetary sovereignty, and the issue of cross-border flow of stablecoins needs to be addressed through sound fiscal policies. South Korean Democratic Party presidential candidate Lee Jae-myung has proposed issuing a won stablecoin to reduce reliance on dollar-pegged assets.

The Bank of Korea is also participating in the Agora multinational central bank settlement project, designing mechanisms to restrict the direct circulation of domestic deposit tokens overseas.