On Monday, the Bank of Korea announced that, considering the diverse risks linked to stablecoins, their issuance ought to be conducted by traditional banks operating under national regulatory frameworks. The South Korean government is in the process of contemplating the introduction of a stablecoin pegged to the South Korean won. This move aims to drive the modernization of the financial system and curtail capital outflows. In its report, the Bank of Korea highlighted that while stablecoins have the potential to introduce fresh opportunities for the South Korean economy, they also carry the risk of sparking instability. As trust is paramount for reliably fostering innovation, institutional safeguards are deemed necessary.
