Bank of Korea official: Stablecoins require central bank backing

ChainCatcher News, according to Ledger Insights, at a stablecoin seminar involving both industry and academia, Yoon Seong-gwan, head of the Digital Currency Research Lab at the Bank of Korea, stated that stablecoins are not new currencies, but rather existing currencies tokenized and operated on distributed ledgers. "For stable operation, they will ultimately require the backing of central banks."

Recently, several banks in South Korea have formed a stablecoin exploration alliance, resulting in the postponement of the next phase of the central bank's tokenized deposit and wholesale CBDC pilot. The new government plans to introduce stablecoin-related legislation after the election. The initial draft limited the central bank's role in stablecoin regulation, but the current framework has been adjusted. The Bank of Korea has previously expressed reservations about stablecoins on multiple occasions.