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


June 18th, according to the report of the Korean Economic Daily, Lee Chang-yeong, the governor of the Bank of Korea, expressed a cautious attitude towards the introduction of a stablecoin linked to the Korean won. Lee Chang-yeong pointed out that although he does not oppose a Korean won stablecoin, factors such as the stability of the foreign exchange market and changes in the banking industry structure need to be considered. He is concerned that a Korean won stablecoin may increase the demand for US dollar stablecoins, posing difficulties for foreign exchange management.Lee Chang-yeong also emphasized that active stablecoin trading may shift payment settlement functions from the banking industry to the non-banking industry, affecting bank revenue structures and business models. The Bank of Korea has been conducting experiments and research on central bank digital currencies (CBDC), but the official issuance of stablecoins requires coordination with financial regulatory authorities.Lee Chang-yeong stated that he will coordinate policies with the Ministry of Finance, the Financial Services Commission, and other departments, comprehensively considering the positive functions and potential risks of stablecoins.