Governor of the Bank of Korea: The Korean won stablecoin should be gradually introduced starting from banks

ChainCatcher news, the Governor of the Bank of Korea, Lee Chang-yong, stated on the 19th: "In the future, in order to incorporate programming functions into currency, a stablecoin for the Korean won is necessary, but a wiser approach is to start with banks and then gradually expand." On that day, while attending the National Assembly's Planning and Finance Committee, Lee Chang-yong addressed the lawmakers' questions regarding the timing of stablecoin introduction and the issuing entities, pointing out the potential risks of stablecoins one by one, demonstrating a cautious attitude.

Regarding the conditions for issuing entities, he emphasized: "To prevent money laundering issues, only large enterprises that have systems such as KYC (Know Your Customer) and meet certain scales should be allowed to issue. However, if large non-bank enterprises are allowed to issue, the existing bank-centered financial industry structure may undergo unknown changes, so it needs to be approached with caution." He explained that this is equivalent to allowing payment settlement banks with narrow banking functions to issue, which may lead to a decline in bank deposits and profitability.