South Korea Considers Stablecoin Launch
South Korea’s central bank chief has indicated he’s not opposed to a stablecoin tied to the Korean won but remains wary about how it could affect the country’s control over foreign exchange.
According to Reuters, Bank of Korea Governor Rhee Chang-yong explained that introducing a won-based stablecoin might make it easier to swap with dollar-backed stablecoins, which could end up boosting their use rather than reducing it. That, he said, could complicate managing the country’s forex.
His comments come as newly elected President Lee Jae-myung advances on his campaign promise to regulate crypto, amid a notable decline in South Korea’s foreign exchange reserves — down $11 billion over six months, from $415.6 billion in December to $404.6 billion in May.
On the regulatory front, Lee’s Democratic Party recently proposed the Digital Asset Basic Act. It would allow companies with at least $368,000 in equity to issue stablecoins, provided they maintain sufficient reserves and secure approval from the Financial Services Commission (FSC).
The FSC is also investigating fees charged by local crypto exchanges, part of the administration’s effort to lower trading costs for younger investors.
While stablecoins pegged to the U.S. dollar remain dominant — with USDT and USDC leading at $156 billion and $61 billion respectively — non-dollar options are gaining traction.
Circle’s euro-backed EURC, for example, has surged to a market cap of $203 million this year, up 156%. Circle’s stock also rallied recently following signals from U.S. lawmakers supporting the GENIUS Act, which aims to regulate stablecoins.
Sources:
https://cointelegraph.com/news/south-korea-central-bank-wont-oppose-stablecoin
https://commons.wikimedia.org/wiki/File:%EC%9D%B4%EC%B0%BD%EC%9A%A9%EA%B5%90%EC%88%98.jpg
https://www.bok.or.kr/eng/search/search/main.do?menuNo=400493&query=Foreign%20Reserves
https://defillama.com/stablecoin/tether