BOK: Stablecoin reserves should be deposited with central bank to prevent runs

South Korea's central bank, the Bank of Korea (BOK), has suggested to the National Assembly that it may be necessary to require issuers of won-denominated stablecoins to deposit their reserve assets with the central bank, The Herald Business reported exclusively. According to materials the BOK recently submitted to the office of Cheon Ha-ram, a lawmaker with the Reform Party, the central bank stated that it should consider imposing a mandatory deposit requirement if it deems it necessary. The BOK argued that such a measure would strengthen user protection by creating a safety net for large-scale redemption requests, minimize any increase in the money supply outside of its control, and ensure that seigniorage from stablecoin issuance benefits the public.