BOK Governor: "Non-bank KRW stablecoins could cause confusion in monetary policy and FX regulations"

Changyong Rhee, Governor of the Bank of Korea, expressed concerns on the 10th that "if multiple non-bank institutions issue KRW stablecoins, there is a possibility that confusion similar to that caused by private currency issuance in the 19th century could reoccur."

At a press briefing that day, Governor Rhee stated, "In such a situation, it would be difficult to implement monetary policy, and adverse effects will arise as we would have to return to the central banking system." He added, "If we indiscriminately allow KRW stablecoins, they could come into conflict with FX liberalization policies, and permitting payment services to non-banks would significantly change the profit structure of banks."

He further emphasized, "This is not an issue that the BOK can decide on its own," and said, "Once the relevant ministry head is appointed, we will discuss the direction together."

On this day, the Monetary Policy Board of the BOK kept the base interest rate unchanged at 2.5% per annum.

Jin Younggi, Hankyung.com reporter young71@hankyung.com