South Korea’s bank-first stablecoin approach lacks logic, says Kaia chair
The Kaia DLT Foundation chair argues the Bank of Korea's plan for banks to exclusively issue stablecoins lacks logical foundation.Summary
Dr. Sangmin Seo, chair of the Kaia DLT Foundation, criticized the Bank of Korea's (BOK) proposal for banks to exclusively lead the rollout of won-denominated stablecoins, stating it lacks a logical foundation. Seo suggests establishing clear, universal rules for all stablecoin issuers—both banking and non-banking institutions—to minimize monetary risks and foster innovation, while urging the BOK to provide guidelines on risk mitigation and issuer qualifications. Furthermore, Seo opposed the BOK's proposal to ban interest payments on stablecoins, viewing it as an excessive measure that would limit utility and adoption, though he agreed stablecoins themselves should not be yield-bearing. This debate occurs as several major South Korean banks plan stablecoin launches, and fintech firms like Naver Financial are also pursuing stablecoin projects amid a generally more favorable regulatory environment for crypto in South Korea.
(Source：Cointelegraph)