The Financial institution of Korea’s push for the banking sector to guide 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 rules, together with capital, overseas alternate, and Anti-Cash Laundering necessities, which might assist reduce any dangers related to introducing stablecoins to the nation.
On the similar time, the BOK needs a coverage consultative physique collectively made up of forex, overseas alternate, and monetary authorities to resolve on issuer eligibility, volumes and different key concerns.
Web optimization 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: Web optimization
Web optimization argued that a greater answer can be to determine clear guidelines for stablecoin issuers that may “reduce financial dangers and foster innovation.”
He mentioned it might additionally enable each banking and non-banking establishments that meet these standards to “compete and show their strengths.”
“It will be much more useful if the Financial institution of Korea might present tips on how these dangers may be mitigated and what {qualifications} are required for an issuer to be considered 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 needs 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 characterize deposits in a financial institution or monetary establishment, to be pursued.
Web optimization mentioned a complete ban on stablecoin yield can be an extreme measure and will hurt and restrict adoption.
“Whereas I agree that stablecoins themselves mustn’t embrace any yield-bearing options, I imagine it might be extreme to limit the era of further yield via using stablecoins,” he mentioned.
“Doing so would considerably restrict their utility and adoption; subsequently, I feel permitting supplementary yield creation ought 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.
Associated: South Korea caps crypto lending charges at 20%, bans leveraged loans
In the meantime, Naver Monetary, the fintech arm of South Korean tech conglomerate Naver, is reportedly shifting ahead with a plan to accumulate Dunamu, which operates the nation’s largest cryptocurrency alternate, Upbit, and plans to launch a Korean won-backed stablecoin venture as soon as the acquisition is full.
The crypto trade 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 varied crypto-related legal guidelines, together with a invoice to legalize stablecoins.
Journal: South Koreans dump Tesla for Ethereum treasury BitMine: Asia Categorical
