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Report Suggests South Korea’s Central Bank Isn’t Opposing Stablecoin
According to Reuters, the governor of the South Korean central bank said on June 18, 2025, that he isn’t against issuing won-pegged stablecoin but has concerns about managing capital flows.
Rhee Chang-yong said, “ Issuing won-based stablecoin could make it easier to exchange them with a dollar stablecoin rather than working to reduce the use of dollar stablecoin. That in turn could increase demand for dollar stablecoin and make it difficult for us to manage forex.”
In simple words, stablecoins are the blockchain-based cryptocurrencies designed to maintain the constant value of typically 1:1 to U.S or any other similar traditional currency.
The comments of the governor came following the recent appointment of pro-crypto president Lee Jae Myung, after the impeachment of the previous president.
What is the Digital Asset Basic Act proposed by SK?
The Digital Asset Basic Act is a proposed legislative framework in South Korea aimed at establishing comprehensive regulations for digital assets, including cryptocurrencies, stablecoins, and related services.
Legislation was proposed by the ruling party on June 10, 2025, under the newly sworn president of South Korea. The proposed legislation will allow companies in SK with at least 500 million Won in equity to stablecoins pegged to the national currency or any other fiat currency like the U.S dollars.
It is also mentioned in the proposed legislation that the stablecoin issuers must maintain 1:1 fiat collateral in reserves held at licensed Korean banks to ensure convertibility and protect against insolvency.
In order to issue stablecoins, the issuers will be required to get approval from the Financial Services Commission, adhere to daily proof of reserve reporting, and conduct monthly stress tests to simulate market collapse.
Why is everyone flocking towards stablecoins?
Over time, the usage of stablecoins has surged to new peaks, and the number of stablecoins in the market has also grown.
Unlike volatile cryptocurrencies, stablecoins are pegged to assets like the U.S dollars or gold, keeping their value steady. The backing from real-world assets makes stablecoins more trustworthy and appealing.
When prices of other coins swing wildly, stablecoins hold steady, making them a go-to for traders looking to park funds without cashing out fiat currency.
One primary reason that has boosted stablecoins’ popularity is their real-world usage; stablecoins like USDT and USDC, including others, are now widely used in lending, borrowing, and trading with lower fees and faster settlement than traditional banking.
A quick overview of the crypto market
As of writing, the crypto market capitalization was $3.29 trillion, with an increase of 0.81%, and the trading volume is $88.36 billion. On the other hand, the crypto fear and greed index was 48, indicating neutrality.
Bitcoin reached $106,047 with an increase of 1.09%, and the market capitalization was $2.1 trillion with an addition of 1.04%. The intraday gainers list has been topped by Sei, followed by Kaia, Gate token, Story, Bitcoin Cash, Stacks, and Bitcoin Cash.
Rhee Chang-yong said, “ Issuing won-based stablecoin could make it easier to exchange them with a dollar stablecoin rather than working to reduce the use of dollar stablecoin. That in turn could increase demand for dollar stablecoin and make it difficult for us to manage forex.”
In simple words, stablecoins are the blockchain-based cryptocurrencies designed to maintain the constant value of typically 1:1 to U.S or any other similar traditional currency.
The comments of the governor came following the recent appointment of pro-crypto president Lee Jae Myung, after the impeachment of the previous president.
What is the Digital Asset Basic Act proposed by SK?
The Digital Asset Basic Act is a proposed legislative framework in South Korea aimed at establishing comprehensive regulations for digital assets, including cryptocurrencies, stablecoins, and related services.
Legislation was proposed by the ruling party on June 10, 2025, under the newly sworn president of South Korea. The proposed legislation will allow companies in SK with at least 500 million Won in equity to stablecoins pegged to the national currency or any other fiat currency like the U.S dollars.
It is also mentioned in the proposed legislation that the stablecoin issuers must maintain 1:1 fiat collateral in reserves held at licensed Korean banks to ensure convertibility and protect against insolvency.
In order to issue stablecoins, the issuers will be required to get approval from the Financial Services Commission, adhere to daily proof of reserve reporting, and conduct monthly stress tests to simulate market collapse.
Why is everyone flocking towards stablecoins?
Over time, the usage of stablecoins has surged to new peaks, and the number of stablecoins in the market has also grown.
Unlike volatile cryptocurrencies, stablecoins are pegged to assets like the U.S dollars or gold, keeping their value steady. The backing from real-world assets makes stablecoins more trustworthy and appealing.
When prices of other coins swing wildly, stablecoins hold steady, making them a go-to for traders looking to park funds without cashing out fiat currency.
One primary reason that has boosted stablecoins’ popularity is their real-world usage; stablecoins like USDT and USDC, including others, are now widely used in lending, borrowing, and trading with lower fees and faster settlement than traditional banking.
A quick overview of the crypto market
As of writing, the crypto market capitalization was $3.29 trillion, with an increase of 0.81%, and the trading volume is $88.36 billion. On the other hand, the crypto fear and greed index was 48, indicating neutrality.
Bitcoin reached $106,047 with an increase of 1.09%, and the market capitalization was $2.1 trillion with an addition of 1.04%. The intraday gainers list has been topped by Sei, followed by Kaia, Gate token, Story, Bitcoin Cash, Stacks, and Bitcoin Cash.
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