Bank of Korea Advocates Bank-Led Stablecoin Framework Amid Capital Flow Concerns
South Korea's central bank has reinforced its stance that won-pegged stablecoins should initially be issued exclusively by licensed banks. The Bank of Korea's report to the National Assembly warns private stablecoin issuance could destabilize monetary policy and trigger capital flight through digital assets.
The proposal outlines a phased approach: banking consortiums WOULD form the first wave of issuers, with possible future expansion to private firms after rigorous safety reviews. This conservative framework aims to address concerns about foreign exchange risks and economic power concentration.
Notably, the central bank highlighted how non-bank stablecoins might blur traditional boundaries between commerce and finance. The report specifically cautioned against potential circumvention of foreign exchange controls through digital tokens.
