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Bank Of Korea Warns Of Stablecoins From Non-Bank Entities, Claims Risk Of Market Confusion

2025-07-11 04:54:10

Bank Of Korea Warns Of Stablecoins From Non-Bank Entities, Claims Risk Of Market Confusion

Main Idea

The Bank of Korea (BOK) expresses concerns about non-bank entities issuing stablecoins, warning of potential risks to the financial system, while also shifting focus from its CBDC project to stablecoin discussions.

Key Points

1. Bank of Korea Governor Lee Chang-yong warns of risks posed by non-bank entities issuing stablecoins, comparing it to historical private currency issuance issues.

2. South Korea is seeing growing momentum for stablecoins, with political and industry discussions on regulations and issuer requirements.

3. The BOK has halted its Central Bank Digital Currency (CBDC) project, the Hank River Project, after completing the first phase of testing.

4. Banks involved in the CBDC project requested the formation of a task force to plan for commercialization, but the BOK emphasized that CBDCs and deposit tokens can coexist.

5. The BOK is engaging with banks, payment companies, crypto exchanges, and blockchain firms to prepare for potential stablecoin launches.

Description

The Bank of Korea’s Governor has warned about the issuance of stablecoins by non-bank entities, arguing that these digital assets could confuse monetary policies and foreign exchange regulations. BOK Concerned About Non-Bank Stablecoins At a Thursday press conference, Bank of Korea (BOK) Governor Lee Chang-yong expressed concerns about the potential issuance of digital assets pegged to the Korean Won (KRW) by non-bank entities. According to local news outlet Yonhap News Agency, Lee affirmed that...

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