Korean Central Bank Demands Bank-Led Stablecoin Issuance with Parallel Deposit Tokens

Central banking authorities drop regulatory hammer on stablecoin market structure.

The Bank-First Mandate

Korean financial regulators are drawing battle lines in the digital currency space - insisting that traditional banking institutions must lead stablecoin issuance while simultaneously developing deposit token alternatives. No more wild west decentralization when it comes to pegged assets.

Dual-Track Approach

The proposed framework would force crypto projects to work through licensed banking channels for stablecoin creation while banks themselves develop their own digital deposit instruments. Two competing systems running parallel - because nothing says innovation like bureaucratic redundancy.

The Regulatory Calculus

Central bankers apparently believe the solution to crypto volatility is more banking intermediaries - the same institutions that brought us the 2008 financial crisis and negative interest rates. Because if there's one thing digital assets needed, it's more legacy financial gatekeepers taking their cut.

Korean regulators are betting big that traditional finance can out-innovate the crypto natives - a bold strategy that ignores how banks typically move at the speed of regulatory compliance rather than market demand.