The Financial institution of Korea’s (BOK) push for the banking sector to steer the rollout of won-denominated stablecoins lacks logic, says Dr. Sangmin Search engine optimisation, 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 rules, together with capital, overseas trade, and Anti-Cash Laundering necessities, which may assist decrease any dangers related to introducing stablecoins to the nation.
On the identical time, the BOK desires a coverage consultative physique collectively made up of foreign money, overseas trade, and monetary authorities to determine on issuer eligibility, volumes and different key concerns.
Search engine optimisation instructed Cointelegraph that whereas the central banks’ issues 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 method ahead: Search engine optimisation
Search engine optimisation argued that a greater resolution could be to ascertain clear guidelines for stablecoin issuers that may “decrease financial dangers and foster innovation.”
He stated it will additionally enable each banking and non-banking establishments that meet these standards to “compete and show their strengths.”
“It might be much more precious if the Financial institution of Korea may present pointers on how these dangers may 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 steadily increasing to different sectors.
Stablecoin yield ban on the desk too
The BOK additionally desires to ban interest payments on stablecoins, arguing that it may immediately compete with financial institution deposits and disrupt the sector, and has as an alternative pitched the commercialization of deposit tokens, digital tokens that characterize deposits in a financial institution or monetary establishment, to be pursued.
Search engine optimisation stated a complete ban on stablecoin yield could 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 will be extreme to limit the era of extra yield by the usage of 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
At the very least eight main South Korean banks announced 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 moving forward with a plan to acquire Dunamu, which operates the nation’s largest cryptocurrency trade, Upbit, and plans to launch a Korean won-backed stablecoin venture as soon as the acquisition is full.
The crypto business in South Korea has benefited from a extra favorable atmosphere following the election of President Lee Jae-myung in June, who has since pushed ahead with numerous crypto-related legal guidelines, together with a bill to legalize stablecoins.
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