The Bank of Korea is actively developing plans to integrate its proprietary digital tokens with public blockchain networks, a strategic move that could significantly alter the financial landscape in South Korea and potentially influence global trends. Deputy Governor Lee Jong-ryeol announced this initiative at the Blockchain Leaders Club event on May 27, 2025, highlighting the central bank's vision to link a central-bank deposit token to these open networks.

According to Lee Jong-ryeol, these deposit tokens are conceptualized as a "type of stablecoin," undergirded by the Bank of Korea's digital currency framework. The plan envisions these state-issued tokens being utilized on established public blockchain systems, such as Ethereum or others, by a wide range of users including banks, businesses, and individuals. This integration aims to leverage the capabilities of public blockchains for transactions and financial services.

A primary driver for this initiative is the growing concern over substantial stablecoin outflows from South Korea. Reports indicate that stablecoins constituted approximately 47% of the nation's crypto outflows in the first quarter, amounting to nearly 27 trillion won (USD $19.1 billion). Deputy Governor Lee warned that an increasing reliance on foreign-issued stablecoins, like USDT and USDC, could undermine the global standing of the Korean won, compromise monetary sovereignty, introduce financial instability, and potentially facilitate illicit activities such as money laundering.

The global stablecoin market provides a compelling backdrop to South Korea's ambitions. This market has seen explosive growth, with its total valuation surpassing $230 billion in March 2025 and currently standing at just over $247 billion, reflecting a $3.537 billion increase in the preceding week alone. These figures demonstrate the rapid proliferation of privately issued stablecoins. This burgeoning market exists within a larger cryptocurrency ecosystem, which, as of recent data, had a total market capitalization of $3.42 trillion. Lee emphasized the urgency for South Korea to develop and promote its own stablecoin solutions before foreign alternatives dominate the local trading environment.

The Bank of Korea's plan is garnering attention and support from various domestic sectors. Prominent cryptocurrency exchanges, including Bithumb, Coinone, and Korbit, along with regulatory bodies, were present at the Blockchain Leaders Club event, signaling the industry's active interest in contributing to the formulation of new regulations. The political arena is also responsive; opposition leader and presidential candidate Lee Jae-myung has committed to introducing a won-backed stablecoin if elected. He argues such a measure could curtail the significant crypto outflow, estimated at 56.8 trillion won ($40.8 billion), and streamline local trading processes. Furthermore, lawmakers like Min Byoung-dug of the Democratic Party are advocating for South Korea to take a leading role in the institutionalization of stablecoins, with broader support from the Democratic Party for stablecoin regulation aimed at preventing foreign tokens from monopolizing the market.

Looking ahead, the Bank of Korea intends to conduct additional tests throughout the current year. These tests will focus on crucial aspects such as token security, safeguarding user privacy, and ensuring compliance with anti-money laundering (AML) regulations. If these pilot programs yield positive results, a more extensive business pilot could be launched by 2026. Such a development would represent a monumental shift in how financial transactions are conducted in South Korea and could establish a precedent for other countries to follow suit in the evolving domain of digital currencies.