South Korean Central Bank Governor Expresses Concerns Over Won Stablecoin

According to Foresight News, South Korean Central Bank Governor Rhee Chang-yong stated at a press conference in Seoul on Wednesday that while he does not oppose the issuance of a won-backed stablecoin, it could facilitate easier exchanges with dollar stablecoins. This, in turn, might increase demand for dollar stablecoins, complicating foreign exchange management. Last month, Rhee warned that stablecoins issued by non-bank entities could undermine the effectiveness of monetary policy and capital flow controls. He emphasized that the central bank should lead the regulation of stablecoins linked to the won. Earlier this month, South Korea's ruling party introduced a digital asset basic bill aimed at establishing the necessary regulatory infrastructure to assist Korean companies in issuing won-backed stablecoins.