Lee Jong-ryeol, Deputy Governor of the Bank of Korea, "Considering Linking Bank of Korea's Deposit Tokens with Private Stablecoins"

Uk Jin

Summary

Lee Jong-ryeol, Deputy Governor of the Bank of Korea, stated that they are considering linking the Bank of Korea's deposit tokens with a public blockchain system.
He mentioned that the Bank of Korea's stablecoins are envisioned to coexist with private stablecoins.
He expressed concerns that if stablecoins are used as currency substitutes, issues such as infringement of monetary sovereignty and financial instability could arise.

According to industry sources on the 27th, Lee Jong-ryeol, Deputy Governor of the Bank of Korea, stated, "We are considering linking the Bank of Korea's deposit tokens with a public blockchain system."

On this day, Deputy Governor Lee made this statement at the 8th Blockchain Leaders Club held in Jung-gu, Seoul.

He further explained, "Deposit tokens are a type of stablecoin (a virtual asset linked to the value of legal currency) issued within the digital currency system built and operated by the Bank of Korea," and "We are envisioning a direction where they coexist with privately issued stablecoins within the entire digital currency system."

Additionally, Deputy Governor Lee emphasized that the most concerning issue is the domestic influx of 'global stablecoins.' He pointed out potential problems if stablecoins are used as a substitute for currency, such as ▲ infringement of monetary sovereignty, ▲ weakening of monetary policy effectiveness, ▲ financial instability, and ▲ money laundering.