Chairman Kaia stated that the South Korean bank-centric approach to stablecoins lacks logic.

Dr. Sangmin Seo, Chairman of the Kaia DLT Foundation, believes that the proposal of the Bank of Korea (BOK) assigning leading banks to manage the issuance of a stablecoin pegged to the won “lacks logical basis.” According to him, instead of just letting banks manage it, the BOK should establish a clear regulatory framework for stablecoin issuers in order to “minimize monetary risk and promote innovation,” allowing both eligible banking and non-banking organizations to participate.

BOK also proposed banning interest payments on stablecoins to avoid competition with bank deposits, while encouraging the development of “deposit tokens”. However, Mr. Seo believes that this ban is excessive and will limit the application potential of stablecoins.

At least eight South Korean banks are expected to launch neo stablecoins pegged to the won from late 2025, while Naver Financial plans to issue its own stablecoin after acquiring Dunamu, the owner of the Upbit exchange.