Overview
- The report says the promise that one coin equals one won is a private agreement without legal or central-bank guarantees, leaving holders outside depositor protections.
- The Bank of Korea outlines seven risks from won-pegged tokens, including depegging and coin runs, regulatory evasion, capital flight, consumer-protection gaps, weaker monetary policy, and pressure on bank intermediation.
- The central bank recommends issuance by regulated banks or bank-led consortia, a cross-authority policy council, and parallel piloting through Project Hangang.
- Officials warn non‑dollar stablecoins face higher vulnerability, citing EURC’s frequent sub‑par trading and drawing lessons from Terra/Luna and USDC during the Silicon Valley Bank episode.
- Lawmakers are moving to finalize a stablecoin framework by year-end, with measures under discussion such as banning interest-like incentives, while private efforts like BDACS and Woori Bank’s KRW1 proceed ahead of final rules.