Key Highlights:
- South Korea’s central bank wants stablecoin issuance to start with banks.
- Officials cite risk reduction, capital outflow concerns, and FX stability.
- President Lee’s administration is advancing pro-crypto regulation.
Stability First: BOK Favors Bank-Issued Stablecoins
The Bank of Korea is urging a cautious approach to stablecoin adoption. In a meeting with commercial banks, Deputy Governor Ryoo Sang-dai advocated for initial issuance through regulated banks to manage risks and ensure financial oversight. Stablecoin activity has surged in South Korea, with $19.5 billion transferred abroad in Q1 alone. Authorities are increasingly concerned about capital flight and its impact on monetary sovereignty.Regulatory Framework in the Works
President Lee’s administration is pushing forward a Digital Asset Basic Act, which would allow local firms with sufficient capital to issue won-backed stablecoins. The central bank is also exploring a hybrid model combining deposit tokens with public blockchain stablecoins. While Bank of Korea Governor Rhee Chang-yong supports the move, he emphasizes the importance of managing foreign exchange risk and market disruption, signaling a cautious but supportive stance on stablecoin innovation.
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