The Bank of Korea (BOK) is collaborating with relevant organizations to establish a legal framework for stablecoin. The goal is to ensure the stability and practical application of stablecoin, while preventing its use for foreign exchange control evasion. This is a crucial step in balancing financial innovation and the safety of the traditional monetary system.
Governor Lee Chang-yong emphasized that stablecoin has driven innovation in financial technology (fintech), but the potential to replace legal tender raises concerns about governance and supervision. The regulatory authority wishes to more closely manage stably-priced cryptocurrencies to protect the national financial system.
Meanwhile, BOK is also participating in the Agorá Project initiated by the Bank for International Settlements (BIS). This is a public-private cooperation initiative aimed at Tokenizing bank deposits and developing central bank digital currency (CBDC) at the organizational level. The main objective is to build a global digital financial infrastructure, address cross-border payment cost issues, and enhance international payment efficiency.
Participating in multinational projects like the Agorá Project is an effort to modernize the payment system, while strengthening the role of CBDC and digital assets in the digitalized economy. This is seen as a strategy for South Korea to maintain its position amid the rapid development of cryptocurrencies and global digital financial services.
