The South Korean government is planning to establish a legal framework for the issuance of a Korean Won stablecoin to promote the internationalization of the Korean Won.

BlockBeats News, July 20th. According to South Korean media, the Financial Services Commission of Korea, the Bank of Korea, the Financial Supervisory Service, and the Korea Securities Depository announced a joint plan aimed at promoting the transformation of the Korean Won from a restricted convertible currency to a free convertible currency, as well as enhancing the cross-border fund flow system.

Under this plan, the South Korean government intends to clarify the issuance and circulation rules of a Korean Won stablecoin within the framework of the "Digital Asset Basic Law," laying the institutional foundation for the entry of a Korean Won-denominated stablecoin into the market.

In addition, the Bank of Korea will also advance a pilot project that combines institutional CBDC with the tokenization of government bonds, participate in Project Agora led by the Bank for International Settlements (BIS), and explore a digitized cross-border payment system.