The South Korean central bank has announced a bold initiative to address rising outflow of capital from the country’s cryptocurrency market. The Bank of Korea aims to integrate its state-backed deposit tokens with public blockchain networks by 2026, a move designed to reduce reliance on foreign stablecoins that have become increasingly prevalent. This plan comes as South Korean citizens sent nearly half their crypto trading capital abroad in Q1 2025 ($27 trillion won), primarily using USDT and USDC for stability. The initiative aims to protect the country’s monetary sovereignty by providing a domestically-backed alternative to USD-pegged stablecoins, potentially reducing dependence on these assets that now dominate outflows. Experts believe this shift will have significant implications for global stablecoin markets.