The Bank of Korea has expressed the need for control over the issuance of won-based stablecoins, emphasizing the importance of involving monetary authorities.
Position of the Central Bank
The Bank of Korea stated that monetary authorities must be involved from the start if stablecoins tied to the Korean won are issued. According to a senior official, the use of such stablecoins as legal tender could complicate monetary policy operations and would require the Bank of Korea's involvement in the approval process.
Impact of Stablecoins on Economy
Koh Kyung-chul, head of the central bank's electronic finance team, indicated that stablecoins could affect how the BOK implements monetary policy, manages financial stability, and oversees payments and settlements. He stressed that the central bank should have 'substantial legal authority' at the authorization stage when it comes to approving stablecoin issuers.
Statistics on Cryptocurrency Transfers
Democratic Party lawmaker Min Byung-duk reported that nearly half of the cryptocurrencies sent overseas from South Korean exchanges in the first quarter were dollar-based stablecoins. According to the Financial Supervisory Service, approximately 56.8 trillion won (around $40.6 billion) worth of cryptocurrencies were transferred overseas between January and March from five crypto exchanges, with 47.3% being stablecoins such as Tether and USD Coin.
The Bank of Korea emphasizes the importance of regulating stablecoins to safeguard the country's monetary policy. As transaction volumes rise, the need for such control continues to grow.
