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South Korea’s Central Bank Warns of Stablecoin Risks, Urges Bank-Led Issuance

South Korea’s Central Bank Warns of Stablecoin Risks, Urges Bank-Led Issuance

Author:

Global Cryptocurrency

Published:

2025-10-28 21:53:01

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BTCCSquare news:

South Korea’s central bank has raised alarms over the unchecked growth of won-pegged stablecoins, citing systemic risks to monetary stability. The Bank of Korea’s report underscores the potential for depegging events and illicit capital flows if private issuers operate without safeguards.

Governor Rhee Chang-yong’s team insists that only regulated banks should issue stablecoins, arguing non-bank players could destabilize monetary control. The warning comes as Seoul debates frameworks for digital assets, with the BOK highlighting collateral management failures as a critical vulnerability.

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