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- 🚀 ETH jumped to $4,600 this morning, up 8.69% in 24h!
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South Korea's Central Bank Governor: The Korean Won stablecoin may increase demand for the US dollar, contrary to the President's goals.
According to Techub News and reported by The Block, South Korea's Central Bank Governor Lee Chang-yong expressed concerns about the country's early exploration of the Korean won stablecoin, stating that it could lead to increased demand for the US dollar. "The issuance of a Korean won stablecoin may not reduce the use of US dollar stablecoins; rather, it may facilitate exchanges between US dollar stablecoins and Korean won stablecoins, which could increase the demand for US dollar stablecoins," Lee Chang-yong stated at a press conference on Wednesday. Lee Chang-yong pointed out that this could pose challenges for the Central Bank in terms of forex regulation.
However, the governor of the Bank of Korea clarified that the central bank is not opposed to the issuance of won stablecoins and believes that such assets are necessary, provided that appropriate measures are taken to manage risks. In addition, the Bank of Korea also expressed concern about the potential disruption that the introduction of local stablecoins could cause to the banking sector, as payment and settlement services will be transferred to non-bank entities.