BOK Governor Rhee: Won-pegged stablecoin raises significant concerns

Bank of Korea Governor Rhee Chang-yong stated that stablecoins remain highly controversial, speaking at the Asian Financial Forum (AFF) in Hong Kong, according to local media outlet rthk. He warned that if a won-pegged stablecoin were to be launched, it could be combined with U.S. dollar stablecoins to circumvent capital outflow regulations. Rhee explained that dollar-pegged stablecoins are used across various regions and have lower transaction costs than using the U.S. dollar directly. He added that if exchange rate volatility fuels market speculation, funds could flow into U.S. stablecoins, potentially leading to large-scale capital movements. Rhee also emphasized that regulation is becoming more difficult as a growing number of non-bank institutions are issuing stablecoins.