The Bank of Korea’s proposal for local banks to lead the rollout of won-denominated stablecoins is criticized by Dr. Sangmin Seo, chair of the Kaia DLT Foundation. Seo argues that clear rules for stablecoin issuers would be a better solution to minimize risks and encourage innovation.

The BOK also wants to ban interest payments on stablecoins, suggesting the commercialization of deposit tokens instead. Seo believes a total ban on stablecoin yield would be excessive and limit adoption, advocating for allowing supplementary yield creation to be permitted.

South Korea’s stablecoin market is heating up, with eight major banks planning to offer a stablecoin pegged to the won by late 2025 or early 2026. Naver Financial is reportedly moving forward with plans to acquire Dunamu, operator of Upbit, to launch a Korean won-backed stablecoin project post-acquisition.

The crypto industry in South Korea has seen positive developments following the election of President Lee Jae-myung in June, with new laws being pushed forward, including a bill to legalize stablecoins. The country’s environment is becoming more favorable for digital assets.

Read more at Cointelegraph: Korea’s Bank-Led Stablecoin Rollout Lacks Logic: Kaia Exec