SEOUL, June 18 – South Korea’s central bank chief, Rhee Chang-yong, said he isn’t opposed to the idea of issuing stablecoins backed by the Korean won. However, he raised concerns about how this could affect the country’s ability to manage foreign exchange (forex) flows.
Won-Based Coins May Stir Demand for US Dollar Tokens
Speaking at a press conference in Seoul, Rhee explained,
“Issuing won-based stablecoins might actually make it easier for people to convert them into U.S. dollar stablecoins. That could increase demand for dollar-based tokens and complicate our efforts to manage forex markets.”
What Are Stablecoins and Why They Matter
Stablecoins maintain a stable value by pegging 1-to-1 with fiat currencies like the U.S. dollar. Crypto traders often use them for fast, stable transfers between assets, but their use is expanding into payments and broader finance.
President Lee Pushes for Home-Grown Digital Coins
Rhee’s comments come as President Lee Jae Myung advances his campaign promise to support won-backed stablecoins. His administration is now driving regulatory reforms to make local stablecoins a reality.
New Law Could Enable Korean Firms to Issue Coins
Earlier this month, the ruling Democratic Party introduced the Digital Asset Basic Act, a proposed bill that would give legal backing to stablecoins issued by Korean firms.
Ex-Crypto Leader Joins Government as Policy Head
In a sign of serious intent, President Lee appointed Kim Yong-beom as his top policy officer. Kim is a former financial regulator and also led crypto think tank Hashed Open Research.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
