South Korea Launches Roadmap for Won Stablecoins and Currency Reforms

Introduction of the Roadmap

On July 19, 2026, South Korea unveiled a comprehensive roadmap aimed at making the Korean won a freely convertible currency. This initiative pairs foreign exchange reforms with a legal framework for won-backed stablecoins, alongside the development of new digital payment infrastructure.

Framework for Stablecoins

The roadmap includes measures to establish legal rules for the issuance and circulation of won-denominated stablecoins, which will be integrated into the domestic financial system under the anticipated Digital Asset Basic Act. This legislation is expected to provide a unified legal framework for cryptocurrencies and stablecoins. Once enacted, won-backed stablecoins will receive official recognition as a distinct category of issuance.

Central Bank Initiatives

The Bank of Korea also announced plans to enhance its pilot projects, connecting an institutional central bank digital currency (CBDC) with tokenized government bonds. Furthermore, participation in the Bank for International Settlements’ Project Agora aims to bolster digital infrastructure for cross-border payments.

Prioritization of Bank Consortiums

Recent statements from the Bank of Korea suggest that it favors bank-led consortiums to take the lead in issuing won-backed stablecoins. The central bank argues that existing banking supervision offers better safeguards for financial stability and consumer protection. Additionally, there is a proposal to form a statutory policy body comprising various financial regulators and government agencies to oversee the stablecoin sector.

Expansion of Deposit Token Programs

As part of its ongoing initiatives, the Bank of Korea is expanding its deposit token program. This program provides blockchain-based representations of commercial bank deposits, set to operate on the central bank’s wholesale CBDC infrastructure. Potential future applications include government subsidies, public vouchers, and everyday payment services such as electric vehicle charging payments.

Modernizing Foreign Exchange Rules

The roadmap does not only focus on digital assets but also includes significant reforms to enhance South Korea’s foreign exchange system. Following the recent launch of round-the-clock foreign exchange trading, plans have been set in motion to establish an offshore won settlement network within the Bank of Korea. This will allow overseas financial institutions registered as offshore won settlement entities to facilitate won transactions for foreign users without necessitating account openings in South Korea.

Improving Cross-Border Transactions

To streamline cross-border transactions, the government is contemplating more than doubling reporting thresholds for foreign currency lending and capital dealings. In the long term, the aim is to transition from a system based on prior approvals to one that emphasizes post-reporting, reducing administrative burdens while aligning South Korea’s financial system with the growing international usage of digital assets, including won-backed stablecoins.