Lee Chang-yong, the governor of the Bank of Korea, said on the 19th that "it is desirable to introduce the won stablecoin by starting with banks and then expanding."
On this day, Lee noted during a full meeting of the Strategy and Finance Committee that "if non-bank financial institutions issue won stablecoins in terms of monetary policy, even if the total issuance is regulated, there could be a significant market shock in order to reduce the money supply depending on the economic situation."
He added, "99% of stablecoins globally are dollar stablecoins," and further explained, "There is demand because every country wants to hold dollars."
He expressed skepticism about whether demand for dollar stablecoins would decrease if "a won stablecoin is created," stating, "It is partly true that because there will be more dollar stablecoins, we should defend with won stablecoins, but there are also aspects that are not right."
He further stated, "It would be better to gradually introduce stablecoins as a means of payment while observing the development of domestic virtual assets over time."
When Ahn Do-geol, a member of the Democratic Party of Korea, pointed out that "stablecoins as a means of payment have overwhelming efficiency and need to be introduced quickly," Lee responded, "I do not mean to proceed slowly (with the introduction of won stablecoins) in a conservative manner."
Lee said, "It can be done quickly centered around the banking sector," adding, "I believe it is acceptable to move quickly and have safety measures in place for issuers."
He also stated, "While centered around banks, if innovation does not occur, many issues can be resolved by including non-bank entities in a consortium to innovate together."
Regarding the demand for non-bank financial institutions to issue won stablecoins, Lee stated, "If a not very large institution takes on this role, it could lead to assisting money laundering, causing side effects and increasing uncertainty."
Lee further remarked, "If securities companies and insurance companies engage in payment settlement tasks—that is, if non-banks perform the roles that banks should be doing—it could activate dominance in Korea's industrial structure, which has significant monopolistic conditions," and noted, "We should also consider how the bank-centered industrial structure will change if bank revenue decreases."