The budget office also pointed out that money moving out of bank deposits could weaken banks’ role as credit intermediaries. A wave of redemptions, it said, might force issuers to dump reserve assets, which could break the token’s peg and crack confidence in the stablecoin.
The budget office also called for reserve requirements, limits on stablecoin rewards and stronger oversight of tokens that could pose risks to financial stability.
Stablecoins could also play a role beyond retail payments. The Financial Services Commission has said that South Korea plans to begin expanding tokenized securities in February 2027, with a later stage linking blockchain-based securities markets to stablecoin payment infrastructure.
The push comes as policymakers study how wider stablecoin use could affect currency markets. A Bank of Korea study published earlier this month found that direct trading between local currencies and dollar stablecoins on Binance can push local currencies lower.
The budget office also found that links between dollar stablecoins traded in South Korea and markets including bitcoin BTC$78,327.00, foreign exchange, stocks and interest rates remain limited. Those connections could become stronger during periods of geopolitical stress or broad dollar strength, it said.
