Bank of Korea Governor: South Korean won stablecoins should be gradually introduced from banks

According to ChainCatcher, Bank of Korea (Central Bank) Governor Lee Changyong said on the 19th: "In the future, in order to add programming functions to currencies, Korean won stablecoins are necessary, but a wiser approach is to start with banks and gradually expand them." On the same day, when attending the Congressional Planning and Finance Committee, Lee Changyong pointed out the potential risks of stablecoins one by one in response to the issuer's issues of the timing of stablecoins and the issuing subjects, and showed a cautious attitude.

Regarding the conditions of the issuing entity, he emphasized: "In order to prevent money laundering, only large enterprises with systems such as **KYC (customer identity identification) and reaching a certain scale should be allowed to issue. However, if large non-bank enterprises are allowed to issue, the existing bank-centered financial industry structure may undergo unknown changes, so it needs to be treated with caution." He explained that this is equivalent to allowing payment and settlement banks with Narrow Banking*, which may lead to a decline in bank deposits and profitability.

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