Bank of Korea Official Advocates for Bank-Led Stablecoin Issuance

A high-ranking official at the Bank of Korea has suggested that established banks should spearhead the issuance of stablecoins. The official emphasized the vital role that traditional financial institutions play in providing stability and trustworthiness within the cryptocurrency market. He explained that banks possess the necessary infrastructure and regulatory expertise to ensure stablecoin compliance with legal and financial standards. Moreover, banks can leverage their strong customer relationships to encourage widespread adoption of stablecoins. This approach, according to the official, will contribute to building confidence in digital currencies and fostering sustainable growth within this emerging financial sector. He underscores the importance of collaboration between central banks and financial institutions to develop a comprehensive regulatory framework that supports innovation while protecting consumers. Furthermore, the official contends that bank-issued stablecoins will mitigate the risks associated with unregulated entities and safeguard the integrity of the financial system.