Lost Translation – See who is really building Korean stubcoin

A recent report claiming that the South Korean government was preparing stubcoins that were won by state-backed Koreans was dismissed as “basically unfounded” by a spokesman for the South Korean-Running Democrats (DPK).

The statement is pushed back by a wave of media speculation that government agencies are working together on the nation’s silly and ridiculous things, making it clear that the real momentum comes from the private sector.

What caused the confusion?

The confusion stems from comments made by DPK’s chief policymaker Jin Sang-jun during the press conference. Jin reportedly commented on oversight of discussions before the Presidential Commission on National Policy Plans, and some journalists misconceived it as a confirmation of the official Stablecoin initiative.

DPK revealed that no such policy was announced and that there was an opposite interpretation Probably the result of a transcription error For reservations.

Related: South Korea’s biggest banks will work together to create new cryptography

Who is actually building “digital won”?

Despite this denial, South Korea is undoubtedly moving forward in a ridiculous space, not through direct government publication.

Private consortiums of eight major banks, including KB Kookmin, Shinhan and Woori, are actively developing the winning Stablecoin.

Supported by the Institute of Financial Communications and Clearing in Korea, the initiative is spearheaded by the Institute of Open Blockchain and Decentralized Identity (DID) and the Institute of Financial Reconciliation. The collaboration aims to challenge the domination of dollar-backed stubcoin.

Related: South Korea delays decryption review of the banking sector amid policy concerns

There are two models for the planned Stablecoin rollout, which is expected between late 2025 and early 2026. It’s a trust-based version and a deposit-link version with a 1:1 fixed for Korea’s victory.

Meanwhile, legislative support for such innovations has already been achieved by introducing the Digital Asset Basic Act on June 10th, legalizing the issuance of Stablecoin for businesses with at least $368,000 in equity capital.

Not everyone is sure

Still, not everyone is riding the pace or direction of these developments. Bank of Korea Governor Rhee Chang Yong has expressed concern that Stablecoin could promote a simpler currency exchange to the US dollar and undermine monetary policy.

Lieutenant Governor Ryoo Sangdai recommends careful bank-led rollouts, citing systematic risks.

“It would be desirable to first allow Stablecoin issuance primarily through banks, which will be subject to higher levels of financial regulations,” Ryoo said.

Meanwhile, South Korea is also continuing its research into central bank digital currency (CBDC), with the pilot program being terminated in June, with more pilots considering it as an alternative strategy to balance innovation and financial stability.