The Financial institution of Korea’s push for the banking sector to steer the rollout of won-denominated stablecoins lacks logic, says Dr. Sangmin Web optimization, the chair of the Kaia DLT Basis.
In a report launched on Monday, the central financial institution argued that banks are already topic to strict laws, together with capital, international trade, and Anti-Cash Laundering necessities, which might assist decrease any dangers related to introducing stablecoins to the nation.
On the similar time, the BOK desires a coverage consultative physique collectively made up of forex, international trade, and monetary authorities to determine on issuer eligibility, volumes and different key concerns.
Web optimization advised Cointelegraph that whereas the central banks’ considerations about stablecoin dangers are comprehensible, its argument for banks main a rollout “appears to lack a logical basis.”
Clear guidelines for all is a greater manner ahead: Web optimization
Web optimization argued that a greater answer can be to ascertain clear guidelines for stablecoin issuers that may “decrease financial dangers and foster innovation.”
He stated it could additionally permit each banking and non-banking establishments that meet these standards to “compete and show their strengths.”
“It will be much more precious if the Financial institution of Korea might present tips on how these dangers will be mitigated and what {qualifications} are required for an issuer to be thought to be reliable.”
In June, BOK deputy governor Ryoo Sangdai proposed that South Korean banks be the first issuers of stablecoins within the nation to make sure a security internet, earlier than progressively increasing to different sectors.
Stablecoin yield ban on the desk too
The BOK additionally desires to ban curiosity funds on stablecoins, arguing that it might straight compete with financial institution deposits and disrupt the sector, and has as a substitute pitched the commercialization of deposit tokens, digital tokens that symbolize deposits in a financial institution or monetary establishment, to be pursued.
Web optimization stated a complete ban on stablecoin yield can be an extreme measure and will hurt and restrict adoption.
“Whereas I agree that stablecoins themselves shouldn’t embrace any yield-bearing options, I consider it could be extreme to limit the technology of extra yield by using stablecoins,” he stated.
“Doing so would considerably restrict their utility and adoption; due to this fact, I believe permitting supplementary yield creation needs to be permitted.”
South Korea’s stablecoin market heating up
No less than eight main South Korean banks introduced plans in June to supply a stablecoin pegged to the South Korean gained, with deliberate launches throughout late 2025 and early 2026.
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In the meantime, Naver Monetary, the fintech arm of South Korean tech conglomerate Naver, is reportedly transferring ahead with a plan to accumulate Dunamu, which operates the nation’s largest cryptocurrency trade, Upbit, and plans to launch a Korean won-backed stablecoin mission as soon as the acquisition is full.
The crypto business in South Korea has benefited from a extra favorable surroundings following the election of President Lee Jae-myung in June, who has since pushed ahead with numerous crypto-related legal guidelines, together with a invoice to legalize stablecoins.
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