Bank of Korea Wants Banks to Issue Stablecoins First
Bank of Korea deputy governor Ryoo Sangdai advocates for banks to be the primary issuers of stablecoins in South Korea, emphasizing the need for a safety net through regulated commercial banks before expanding to other sectors. Concerns about stablecoins include potential capital outflows and impacts on foreign exchange liberalization. Bank of Korea governor Rhee Chang-yong acknowledges the possibility of a won-based stablecoin but stresses the need for careful management of its foreign exchange implications. The ruling Democratic Party has proposed the Digital Asset Basic Act, allowing companies with sufficient capital to issue stablecoins. Ryoo also mentioned that the central bank is progressing with a central bank digital currency (CBDC) as a countermeasure to stablecoins, with ongoing tests concluding on June 30. Other countries are exploring stablecoin options, including partnerships and proposals for government-backed stablecoins.
