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 stablecoins as legal tender could disrupt monetary policy.
A senior BOK official stated that if won-based stablecoins are used like regular money,they could complicate how the bank manages monetary policy. This situation would require the BOK’s involvement in the approval process. The official noted that, similar to the U.S. Federal Reserve, the BOK should have some legal power in related laws.
Koh Kyung-chul, who heads the BOK’s electronic finance team, emphasized that stablecoins could impact how the bank conducts monetary policy, maintains financial stability, and oversees payments. He stressed the need for the central bank to have important legal authority when approving stablecoin issuers.
In May, Democratic Party lawmaker Min Byung-duk revealed that nearly half of the cryptocurrencies sent overseas from South Korea’s major exchanges in the first quarter were dollar-based stablecoins. Data from the financial Supervisory Service showed that around 56.8 trillion won ($40.6 billion) worth of cryptocurrencies were transferred overseas. Of this, 26.87 trillion won, or 47.3%, was in stablecoins like Tether (USDT) and USD Coin (USDC).
These findings highlight the growing importance of stablecoins in south Korea’s crypto landscape and the need for regulatory oversight.
