South Korean central bank official: Stablecoins need central bank backing

ChainCatcher news, according to Ledger Insights, during a seminar on stablecoins involving industry and academia, Yoon Sung-kwan, head of the Central Bank Digital Currency Research Department, stated that stablecoins are not new currencies but rather operate on distributed ledgers by tokenizing existing currencies. "To operate stably, ultimately, a central bank's backing is needed."

Recently, several banks in South Korea have formed a stablecoin exploration alliance, leading to a delay in the next phase of the central bank's tokenized deposits and wholesale CBDC pilot. The new government plans to introduce stablecoin-related legislation after the elections, with the initial draft having limited provisions regarding the central bank's role in stablecoin regulation, although the current framework has been adjusted. The Bank of Korea has previously expressed reservations about stablecoins multiple times.