Won-Denominated Stablecoins Can Function as Legal Tender
Institutional Measures Needed to Prevent Circumvention of Foreign Exchange Market Regulations
Direction to Be Set Together with the Ministry of Economy and Finance, Financial Services Commission, and Financial Supervisory Service
Lee Changyong, Governor of the Bank of Korea, recently addressed the hot topic of won-denominated stablecoins, stating, "After the relevant agencies such as the Financial Services Commission and the Financial Supervisory Service form their respective organizations, we will hold a conference that comprehensively reflects the views of each institution."
Lee Changyong, Governor of the Bank of Korea, is delivering the 75th anniversary commemorative speech at the Bank of Korea in Jung-gu, Seoul on the 12th. Bank of Korea
Speaking with reporters after the 75th anniversary ceremony held at the Bank of Korea annex in Jung-gu, Seoul on the 12th, Governor Lee said, "This issue concerns the Ministry of Economy and Finance, the Financial Services Commission, and the Financial Supervisory Service, so we need to understand the positions of other agencies in order to coordinate or regulate, and to set the right direction. After organizations are established and settled within these agencies, we will comprehensively discuss the issue, incorporating all opinions, both for and against, from each institution."
Initially, the Bank of Korea had planned to hold a conference early next month focusing on concerns about the impact of stablecoins in Korea, but is now rescheduling the event. With the new administration, issues related to won-denominated stablecoins have come to the forefront, and the Bank intends to broaden the discussion to ensure more practical and comprehensive deliberation.
Governor Lee stated that his position on won-denominated stablecoins remains "unchanged." In his commemorative speech, he said, "Won-denominated stablecoins will contribute to innovation in the fintech industry," but also emphasized that "since they can function as a substitute for legal tender, it is necessary to establish institutional measures to ensure both stability and utility, while preventing circumvention of foreign exchange market regulations." Previously, at a press conference on May 29, he pointed out, "Since won-denominated stablecoins are a substitute for currency, if non-bank institutions are allowed to issue them freely, it could significantly undermine the effectiveness of monetary policy."
Governor Lee also referenced the Bank of Korea's anthem, which begins with "A history built on the trust of the people," suggesting that the Bank will continue to voice its necessary opinions on won-denominated stablecoins based on the trust of the public.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
