Circle represents the call from the Bank of Korea to the National Assembly for the urgent regulation of stablecoins in USD ahead of the visit to South Korea

ChainCatcher news, Han Ji-hoon - The Bank of Korea (hereinafter referred to as "BOK") urges the National Assembly to strengthen regulations on dollar stablecoins, citing that their widespread adoption is threatening South Korea's monetary sovereignty. Notably, this call comes as representatives from Circle, the issuer of the major dollar stablecoin USDC, are about to engage in a series of talks with senior executives from South Korean commercial banks.

The BOK emphasized: "The government and the National Assembly urgently need to revise relevant laws such as the Foreign Exchange Transaction Act." The BOK is particularly concerned that the popularity of dollar stablecoins could trigger a "currency substitution" phenomenon, thereby negatively impacting the effectiveness of monetary policy and monetary sovereignty. Furthermore, the BOK assesses that "the outflow of dollars through stablecoins may also exacerbate instability in the foreign exchange market."