South Korean banks are pushing for the issuance of a government-backed digital currency, proposing a won stablecoin model that would allow interest payments to holders. This initiative coincides with the upcoming Digital Asset Basic Act, which aims to establish a comprehensive legal framework for digital assets in South Korea. The Korea Federation of Banks (KFB) recently held a private briefing with major commercial banks to discuss this proposal, which is part of a broader research project conducted by McKinsey & Company. The proposed interest-bearing stablecoin would distinguish itself from existing global models like Tether (USDT) and USD Coin (USDC), which do not offer interest. This model would function similarly to a digital savings account, potentially enhancing monetary policy transmission and financial inclusion. However, it also raises questions about competition and consumer protection. The banking sector's proactive stance reflects a strategic effort to maintain a dominant role in the digital asset ecosystem as South Korea prepares for regulatory changes.