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

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.