South Korea's Central Bank advocates a moderate Stable Coin policy

Gate News bot message, the Central Bank of Korea is advocating the phased introduction of a Stable Coin denominated in Korean won, with a priority for issuance by strictly regulated commercial banks. Ryoo Sang-dai, Senior Deputy Governor of the Bank of Korea, stated that this is aimed at managing the potential impact of these digital assets on monetary policy and financial stability.

According to reports, this position is consistent with that of South Korean left-wing President Lee Jae-myung. Lee Jae-myung is fulfilling his campaign promise to allow companies to issue Stable Coins based on the Korean won. It is said that the Democratic Party, to which Lee Jae-myung belongs, is proposing legislation to establish the necessary regulatory framework to maintain South Korea's competitiveness in the evolving digital asset landscape.

According to reports, Ryoo said, 'It is best to first allow strictly regulated banks to issuance (Stable Coin based on the Korean won), and gradually expand to non-bank sectors as experience accumulates.'

A senior official of the Central Bank of Korea emphasized that the introduction of Stable Coin may have a significant impact on monetary policy and the trading settlement system. He reiterated the concerns of the Governor of the Central Bank of Korea, Lee Chang-rong, about capital flows, emphasizing the importance of establishing a sound safety net to prevent financial market chaos and ensure user safety.

Looking ahead, Ryoo confirmed that as the policy direction of the new government becomes clearer, the Central Bank plans to negotiate with major commercial banks to prepare for the second pilot issuance of its Central Bank Digital Coin (CBDC). The first CBDC pilot project launched by the Central Bank and the Bank for International Settlements at the end of 2023 is expected to conclude next week.

Ryoo also stated that in order to reflect the trend of digitization, the authorities will accelerate market reform, further opening up the South Korean currency coin market to foreign investors on the basis of extending trading hours and increasing overseas participation over the past year.