Bank of Korea Issues Crucial Warning on Non-Bank Won Stablecoins

Key Points

1. The Bank of Korea highlights the fundamental differences between private won stablecoins and a CBDC, stressing the latter's reliability and security.

2. Governor Rhee Chang-yong raises concerns about systemic risks posed by non-bank issued stablecoins, advocating for stricter regulation.

3. The Han River Project is a strategic initiative by the Bank of Korea to develop a secure and reliable digital won, positioning it as the primary digital currency.

4. The Bank of Korea's stance reflects a global trend where central banks are actively exploring CBDCs to balance innovation with financial stability.

5. Non-bank entities issuing won stablecoins are likely to face increased regulatory restrictions in the future, with CBDCs taking precedence.