Changyong Rhee, Governor of the Bank of Korea: "I do not oppose the issuance of KRW stablecoins"

Changyong Rhee, Governor of the Bank of Korea, officially stated that he "does not oppose" issuing KRW-based stablecoins. However, he emphasized the need to carefully examine the potential impact on the foreign exchange market and structural changes in the financial industry.

On the 18th, at the ‘2025 Price Stability Target Operational Status Review Briefing’ held at the annex of the Bank of Korea in Jung-gu, Seoul, Governor Rhee said, “I believe the issuance of KRW stablecoins is necessary. I want to make it clear that I am not against the issuance itself.”

Regarding how stablecoins are issued and their impact on prices, he explained, “The effect on the money supply may vary depending on the form in which stablecoins are issued. There may be no change in the money supply, depending on the nature of the reserve assets held.”

He added, “If KRW stablecoins are issued, the demand for KRW stablecoins may increase compared to dollar stablecoins. This could make it easier to exchange between the two and may create challenges in foreign exchange management.”

He also mentioned changes in the payment and settlement functions. Governor Rhee said, “So far, payment and settlement services have mostly been permitted for banks. If these services are expanded to non-bank sectors, it could affect the profitability of banks and the overall structure of the industry. We need to take a broader perspective.”

In addition, he stated, “Currently, related ministries such as the Ministry of Economy and Finance, the Financial Services Commission, and others have not yet clearly divided roles for designing the stablecoin system. We plan to establish regulations for KRW stablecoins through consultations among the ministries.”