The head of South Korea’s central bank has reportedly indicated support for issuing a won-based stablecoin, expressing only concerns about potential foreign exchange issues. Bank of Korea Governor Rhee Chang-yong stated that such stablecoins could facilitate exchanges with dollar stablecoins, potentially increasing their demand and complicating forex management. This statement follows the efforts of newly elected President Lee Jae-myung, who is pushing for regulatory frameworks for cryptocurrencies, with a recent proposal for the Digital Asset Basic Act that would enable companies to issue stablecoins under certain conditions. Currently, dollar-backed stablecoins dominate the market, but there is rising attention to non-dollar alternatives. With ongoing changes in regulations and South Korea's decreasing forex reserves, the central bank is cautiously exploring the implications of stablecoin issuance.

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