Bank of Korea cites Biden-era policy in latest 'Stablecoin White Paper'

The Bank of Korea appears to have cited the Joe Biden administration's policy in the recently published 'Stablecoin (virtual asset pegged to fiat currency) White Paper.'

On the 10th (Korean time), industry sources said that in the white paper the Bank of Korea released on the 27th of last month, it listed 'bank-centered adoption' as a consideration for the desirable introduction of stablecoins.

The problem was the footnote. In the white paper, the Bank of Korea explained, "The U.S. PWG, in its November 2021 report, recommended limiting stablecoin issuers to insured depository institutions in order to apply supervision, prudential regulation, and the financial safety net to stablecoins." PWG is the U.S. President's Working Group on Financial Markets.

The PWG report was published during former President Joe Biden's administration, and its stance differs from that of the PWG under the current President Donald Trump administration.

A report published in July by the PWG of the Trump administration (President's Working Group on Digital Asset Markets) labeled the previous administration's conservative approach a policy mistake and recommended an innovative mindset to realize the vision of transforming the United States into the 'world capital of digital assets (cryptocurrencies).'

Furthermore, the report published by the PWG under the Trump administration did not argue that stablecoins must be issued by banks. Rather, it stated that issuance should also be allowed for non-banks, provided they are required to obtain licenses at the state level.