The Governor of the Central Bank of South Korea is cautious about the Korean won stablecoin: concerned about changes in forex management and the banking sector structure.

PANews reported on June 18 that it was reported that Bank of Korea Governor Lee Chang-yong expressed a cautious stance on the introduction of the South Korean won-based stablecoin at the “Press Briefing on Price Stability Inspection”. He said that although he did not oppose it, it was necessary to comprehensively consider the stability of the foreign exchange market and the structural changes of the banking industry. Rhee Chang-yong questioned that if the KRW stablecoin is issued, it may increase the demand for the US dollar stablecoin because of its convenient exchange with the US dollar stablecoin, which will bring difficulties to foreign exchange management. In addition, the Bank of Korea is concerned that the activation of stablecoins will shift the existing payment and settlement functions from the banking sector to the non-banking sector. Rhee stressed that this will have a significant impact on the bank’s revenue structure and business model, which needs to be addressed in the big picture. He also said that because the relevant policies involve multiple departments, he will formally carry out policy coordination with the Ministry of Strategy and Finance and the Financial Commission, comprehensively consider the pros and cons of stablecoins, and take comprehensive countermeasures.