South Korea’s central bank is advocating for a gradual rollout of stablecoins, with Bank of Korea governor Ryoo Sangdai emphasizing that banks should be the first issuers. During a press conference, Ryoo highlighted the necessity of introducing stablecoins at regulated commercial banks to create a safety net. He noted the potential for market disruption and the need for regulatory oversight. Concerns about stablecoins include possible capital outflows and complications in managing the foreign exchange facets of a won-based token. Additionally, Ryoo mentioned the central bank's ongoing efforts to develop a central bank digital currency (CBDC) as a response to stablecoin developments. While the government’s stance on stablecoins remains unclear, it plans to consult with banks regarding the timing of further pilot tests. South Korea is not alone, as countries like those in Africa and Russia are also exploring stablecoin options to enhance their financial systems.

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