Governor Of The Bank Of Korea “Allowing Non-bank Won Stablecoin May Cause Monetary Order Disruption”

Bank Of Korea Preparing For The Era Of Won Stablecoin (Source: MT)

The Bank Of Korea Governor, Lee Chang-yong, expressed strong concerns about non-bank institutions issuing won-based stablecoins. According to Yonhap News, Governor Lee warned that if multiple non-bank institutions issue won stablecoins, it could repeat the confusion of the 19th-century private currency issuance, highlighting potential side effects.

He pointed out that in such situations, it becomes difficult for the Bank Of Korea to execute its monetary policy, and there could be confusion in reverting back to a central bank-centric system. He particularly mentioned that indiscriminate allowance of won stablecoins could conflict with foreign exchange liberalization policies and could cause major changes in the profit structure of traditional banks if payment functions shift to non-banks.

Governor Lee further emphasized that the ‘Han River Project’ being pursued by the Bank Of Korea is the first step to introducing a safe and regulatory-controllable won-based stablecoin. He made it clear that public character and monetary stability should be prioritized over indiscriminate participation by the non-banking sector.