Bank of Korea Governor is Cautious About Korean Won Stablecoin, Considering Foreign Exchange Market Stability

According to ChainCatcher, Bank of Korea Governor Lee Chang-yong is cautious about the introduction of the Korean won stablecoin. He stated that factors such as foreign exchange market stability and changes in the banking industry's structure need to be considered. There are concerns that the Korean won stablecoin may increase the demand for US dollar stablecoins, complicating foreign exchange management. The active use of stablecoins could lead to a shift in payment and settlement functions from the banking sector to the non-banking sector, affecting banks' revenue structure and business models. The Bank of Korea is conducting experimental research on CBDCs, but the formal issuance of stablecoins requires coordination with financial regulatory authorities. Lee Chang-yong will coordinate policies with the Ministry of Finance, Financial Services Commission, and other departments, comprehensively considering the positive functions and potential risks of stablecoins.