The Bank of Korea (BOK) is pushing for swift regulation of dollar-pegged stablecoins, citing potential risks to monetary sovereignty. This call comes ahead of a planned visit from Circle, a major stablecoin issuer. Yonhap News reported the BOK's concerns, highlighting that the widespread adoption of dollar stablecoins could undermine the effectiveness of monetary policy and potentially lead to currency substitution. The BOK stressed the need for urgent legal revisions to the Foreign Exchange Transactions Act. They also pointed out that dollar outflows via stablecoins could destabilize the foreign exchange market. The BOK's written response to lawmaker Park Seong-hoon emphasized that the circulation of these stablecoins domestically could facilitate foreign exchange regulation evasion. The central bank sees the need for the government and National Assembly to expedite discussions and implement appropriate regulations to mitigate these risks. ```
