South Korea's central bank governor expresses caution about won stablecoins

Odaily Planet Daily News According to the Korea Economic Daily, Lee Chang-yong, governor of the Bank of Korea, expressed caution about the launch of the won-based stablecoin. Lee Chang-yong pointed out that although he did not oppose the won stablecoin, factors such as the stability of the foreign exchange market and changes in the banking industry structure needed to be considered. He was worried that the won stablecoin might increase the demand for the dollar stablecoin and bring difficulties to foreign exchange management. Lee Chang-yong also emphasized that the active stablecoin might lead to the shift of payment and settlement functions from the banking industry to the non-banking industry, affecting the bank's income structure and business model. The Bank of Korea has been conducting experiments and research on central bank digital currencies (CBDCs), but the formal issuance of stablecoins requires coordination with financial regulators. Lee Chang-yong said that he would coordinate policies with the Ministry of Finance, the Financial Services Commission and other departments to comprehensively consider the positive functions and potential risks of stablecoins.