South Korean finance ministry to discuss stablecoin impact on won

South Korea's Deputy Prime Minister and Minister of Economy and Finance, Koo Yoon-cheol, will discuss dollar-pegged stablecoins with private sector experts in international finance and foreign exchange on Dec. 1, the Munhwa Ilbo reported. The topic is a key agenda item for the inaugural meeting of a new government panel, which will also cover the foreign exchange market and Morgan Stanley Capital International (MSCI). The ministry has reportedly identified stablecoins as a major factor contributing to foreign exchange market volatility. This move addresses growing concerns that the increased use of dollar-based stablecoins in international payments could weaken the South Korean won and drive up the won-dollar exchange rate.