The world of digital assets is constantly evolving, and central banks are paying close attention. A critical development from South Korea highlights this: the Bank of Korea (BOK) is pushing for significant early involvement in the approval process for any potential won-backed stablecoins.
Why the Bank of Korea Needs Early Involvement
According to reports, including one from Yonhap, Ko Kyeong-cheol, head of the BOK’s electronic finance team, recently spoke at a financial law conference. He stressed that the introduction of stablecoins, particularly those pegged to the Korean won, could have profound effects on the central bank’s core functions. These include the ability to conduct monetary policy effectively, maintain financial stability, and manage payment settlements. The BOK believes having a role from the initial approval stage is essential to mitigate potential negative impacts these digital assets could have on the nation’s financial system and the central bank’s objectives.
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