The post South Korean Banks Move Forward With Won Stablecoin Project appeared on BitcoinEthereumNews.com.

South Korea’s ruling party has denied reports it is creating a state-backed stablecoin A private consortium of eight major banks is actively developing its own won-pegged stablecoin The Bank of Korea has urged a cautious, bank-led approach, citing financial stability risks Recent reports claiming that South Korea’s government is preparing a state-backed Korean won stablecoin have been dismissed as “groundless” by a spokesperson from the ruling Democratic Party of Korea (DPK).  The statement pushes back against a wave of media speculation that government bodies were collaborating on a national stablecoin, clarifying that the real momentum is coming from the private sector. South Korea’s ruling party refutes reports of government-backed stablecoin bill A spokesperson from South Korea’s ruling Democratic Party of Korea (DPK) told CoinNess that recent reports claiming the Ministry of Economy and Finance and the Bank of Korea are preparing legislation… — CoinNess Global (@CoinnessGL) June 26, 2025 What Caused the Confusion? The confusion stems from remarks made by Jin Sung-joon, DPK’s chief policymaker, during a press briefing. Jin reportedly commented on monitoring discussions at the Presidential Commission on National Policy Planning, which some journalists misconstrued as confirmation of an official stablecoin initiative. The DPK clarified that no such policy has been announced and that any interpretations to the contrary were likely the result of transcription errors to Coinness. Related: The Biggest Banks in South Korea Team Up to Create a New Crypto Who Is Actually Building the ‘Digital Won’? Despite this denial, South Korea is undeniably moving forward in the stablecoin space, just not through direct government issuance.  A private consortium of eight major banks, including KB Kookmin, Shinhan, and Woori, is actively developing a won-pegged stablecoin.  Backed by the Korea Financial Telecommunications and Clearings Institute, the initiative is being spearheaded alongside the Open Blockchain and Decentralized Identity…

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Filed under: News - @ June 26, 2025 9:25 pm