Bank of Korea Warns Against Unregulated Issuance of Won-Denominated Stablecoins

The Bank of Korea has raised concerns over the potential issuance of won-denominated stablecoins by non-banking institutions. Governor Rhee Chang-yong highlighted the risks during a press conference following the Monetary Policy Committee's decision to maintain the base interest rate at 2.50%.

Unchecked stablecoin issuance could lead to systemic confusion reminiscent of 19th-century private currency chaos, complicating monetary policy implementation. The central bank warns such moves might conflict with foreign exchange liberalization policies while disrupting traditional payment settlement structures.

"This isn't a decision we can make unilaterally," Rhee stated, emphasizing the need for inter-ministerial coordination. The remarks come as global regulators grapple with balancing innovation against financial stability in the digital asset space.