BOK Governor Likely to Discuss Won-Backed Stablecoin Issuance: Report

Bank of Korea (BOK) Governor Rhee Chang-yong will meet the presidents of other Korean banks to possibly discuss the quick issuance of Won-based stablecoins, a Newsis report noted.

The discussions are likely to be held during the bankers’ dinner on June 23 at the Seoul Bankers’ Association building.

The meeting is expected to address growing political pressure to allow the issuance of stablecoins. The news arrives days after the nation’s Democratic Party unveiled a bill to legalize the issuance of stablecoins by local firms.

South Korea’s ruling Democratic Party has introduced the Digital Asset Basic Act to legalize stablecoin issuance.#SouthKorea #CryptoRegulations #Stablecoinshttps://t.co/5NLE2AEab5

The BOK has previously expressed concerns about non-bank entities issuing stablecoins. The governor noted that these assets could undermine monetary policy and financial stability.

Per the local media report, the pace of discussions on stablecoins has increased recently. The governor has been frequently meeting commercial bank heads, it added.

Last month, the governor made unusual visit to six major Korean banks, including KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, and IBK Industrial Bank. During the meetings, they reportedly discussed BOK’s digital currency projects, ‘Project Hangang’ and ‘Agora Project.’

However, previous discussions regarding central bank digital currency (CBDC) have faded out recently since the inauguration of the Trump administration.

Deputy Governor Lee Jong-ryeol is considering a plan to link the BOK’s deposit tokens with the public blockchain system. He described state-backed deposit tokens as a “type of stablecoin,” issued within the bank’s crypto framework.

However, since there are no regulations related to stablecoins in Korea yet, various measures are expected to be reviewed during future regulatory discussions.

The volume of dollar stablecoins is also increasing rapidly in Korea, Seol Business Daily reported. This is because dollar stablecoins currently account for more than 95% of the global stablecoin market. Deputy Governor Jong-ryeol also voiced concerns over the proliferation of foreign stablecoins. He called them “the most concerning” part of Korea’s crypto landscape

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