South Korean Central Bank Governor: The Korean won stablecoin should be gradually introduced starting from banks.

[South Korea Central Bank Governor: The Korean Won stablecoin should be gradually introduced starting from banks] On the 19th, Bank of Korea (Central Bank) Governor Lee Chang-yong stated: "In the future, in order to incorporate programming functions into currency, the Korean Won stablecoin is necessary, but a more prudent approach is to start introducing it from banks and then gradually expand." On the same day, while attending the National Assembly's Planning and Finance Committee, Lee Chang-yong addressed the questions from lawmakers regarding the timing and issuance entities of the stablecoin, pointing out the potential risks associated with stablecoins one by one, demonstrating a cautious attitude. Regarding the conditions for the issuance entity, he emphasized: "To prevent money laundering issues, only large enterprises that have systems such as **KYC (Know Your Customer) and reach a certain scale should be allowed to issue. However, if large non-bank enterprises are allowed to issue, the existing bank-centered financial industry structure may undergo unknown changes, so it needs to be treated with caution." He explained that this is equivalent to allowing payment settlement banks with narrow banking functions **, which may lead to a decline in bank deposits and profitability.