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

PANews reported on June 18 that according to the Korea Economic Daily, Lee Chang-yong, governor of the Bank of Korea, expressed a cautious stance on the introduction of a won-based stablecoin at the "Price Stability Inspection Press Conference". He said that although he did not oppose it, it was necessary to comprehensively consider the stability of the foreign exchange market and the changes in the banking industry structure. Lee Chang-yong questioned that if the won stablecoin is issued, it may increase the demand for the US dollar stablecoin due to its convenient exchange with the US dollar stablecoin, which will bring difficulties to foreign exchange management. In addition, the Bank of Korea is worried that the activation of stablecoins will shift the existing payment and settlement functions from the banking industry to the non-banking industry. Lee Chang-yong emphasized that this will have a significant impact on the bank's income structure and business model, and it needs to be handled from the overall situation. He also said that because the relevant policies involve multiple departments, he will formally carry out policy coordination with the Ministry of Strategy and Finance, the Financial Services Committee, etc., comprehensively consider the pros and cons of stablecoins, and take comprehensive response measures.