The governor of the Bank of Korea is cautious about the launch of a won stablecoin

ChainCatcher news, according to the Korea Economic Daily, Bank of Korea Governor Lee Chang-yong expressed a cautious attitude towards the launch of the Korean won stablecoin. Lee Chang-yong stated, "While I do not oppose the Korean won stablecoin, we need to consider factors such as the stability of the foreign exchange market and changes in the banking structure. 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 the revenue structure and business model of banks."

The Bank of Korea has been conducting experimental research on Central Bank Digital Currency (CBDC), but the formal issuance of stablecoins requires coordination with financial regulatory authorities. Lee Chang-yong stated that he will 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.