South Korea’s Central Bank seeks Control Over Won-Based Stablecoins
the Bank of Korea (BOK) is pushing for legal authority over the approval of stablecoins tied to the Korean won. The central bank warns that treating these digital currencies as legal tender could disrupt monetary policy.
A senior BOK official stated that if won-based stablecoins are used like customary money, they could complicate policy operations. This situation demands the BOK’s involvement in the approval process. The official noted that, similar to the U.S.Federal Reserve,the BOK should have some legislative power.
Koh Kyung-chul, head of the BOK’s electronic finance team, emphasized the need for “substantial legal authority” when approving stablecoin issuers. He believes stablecoins could impact monetary policy, financial stability, and payment systems.
In May, Democratic Party lawmaker Min Byung-duk revealed that nearly half of the cryptocurrencies sent overseas from south Korea’s major exchanges were dollar-based stablecoins. data from the Financial Supervisory Service showed that around $40.6 billion worth of cryptocurrencies were transferred between January and March. Of this, 47.3% were stablecoins like Tether (USDT) and USD Coin (USDC).
Byung-duk’s findings highlight the growing influence of stablecoins in South Korea’s crypto landscape. The BOK’s stance underscores the need for regulatory oversight to maintain financial stability.
