Stablecoin statement from the South Korea Central Bank: iz We are not against it, but there is a foreign exchange risk ”
Rhee Chang-Yong, the President of the Central Bank of South Korea, said that it is not against a Won-based stablecoin, but it could increase the orientation to the dollar stablecoins. The statement came with the preparation of the country's decreasing foreign exchange reserves and the preparation of the new government's crypto arrangements.
While South Korea gained momentum in regulatory steps for crypto assets, the Central Bank President Rhee Chang -ong said that the country is not against exporting a Won-supported stablecoin. However, he stressed that this step can cause serious balance problems for foreign exchange markets.
Rhee used the following statements in his press release:
“Won -based stablecoin export can facilitate the change with the dollar stablecoin. This can increase the use of dollar stablecoin and make foreign exchange management difficult.”
💱 Foreign exchange reserves melts
This statement came in the same period as the country’s diminishing foreign exchange reserves. According to Bank of Korea data:
December 2024: $ 415.6 billion
May 2025: $ 404.6 billion
Total decrease in 6 months: $ 11 billion
This decrease in foreign exchange reserves is concerned about Won’s stability and foreign trade balance.
Rapid progress on the regulation front
The crypto arrangements, which are among the election promises of the new president Lee Jae-Myung, are rapidly implemented. According to the draft “Basic Law of Digital Asset” presented on June 10:
Companies with at least $ 368,000 self -capital will be able to export stablecoin
Companies will have to have a full response reserve
The approval of the Financial Services Commission (FSC) will be essential for the export of Stablecoin
In addition, FSC continues to investigate on local stock exchanges on trading fees and transparency.
💲 Dollar domination continues, but alternatives are rising
In the global stablecoin market:
USDT (Tether): $ 156 billion
USDC (Circle): $ 61 billion
However, out -of -dollar stablecoin projects are also accelerating:
Circle’s Euro-Pegged Stablecoin has grown 156 %since the beginning of 2025 to 203 million dollars.
KAIA announced the South Korean-based Won-Pegged Stablecoin project
Genius Act, which has reached the acceptance of the US Congress, can accelerate this growth even more.
🌏 The strategic balance of South Korea
South Korea has to establish a precise balance between increasing crypto adaptation and maintaining foreign exchange stability:
A regulation framework that supports digital innovation is being tried to be created
However, the risk of dollarization can have serious consequences in case of the wrong design of stablecoins.
If the won-pegged stablecoin becomes widespread, arbitrage may occur with dollar stablecoins
For this reason, the cautious approach of the Central Bank focuses on the protection of macroeconomic security while supporting technological development.
