Bank of Korea seeks early involvement in approval of won-backed stablecoins

The Bank of Korea (BOK), South Korea's central bank, has emphasized that it should be involved from the initial approval stage if a Korean won-backed stablecoin is introduced. According to Yonhap, Ko Kyeong-cheol, head of BOK's electronic finance team, highlighted at a recent financial law conference that stablecoins could significantly impact the central bank's ability to implement its policies, including those related to monetary policy, financial stability and payment settlements. He stressed that BOK should have a role in the approval process to minimize any potential negative effects of digital assets on the central bank's policy objectives.