The head of the South Korean central bank has reportedly said he is not against the country that releases a Stablecoin -based won, but is still concerned about foreign token exchange management.
Reuters reported On Wednesday, the Bank of Korea Governor Rhee Chang-Tyong said at a press conference that “the release of won-based stablecoin made it easier to exchange them with Stablecoin dollars instead of working to reduce the use of Stablecoin dollars.”
Once again the demand for Stablecoin dollars can increase and it will make it difficult for us to manage Forex, ”he added.
Rhee’s comment came as South Korea’s newly elected President Lee Jae-Myung, was advancing crypto regulation as promised in his campaign and as the country’s forex reserve was declining.
By the end of December, the Bank of Korea had a Forex reserve worth $ 415.6 billion, which dropped to $ 404.6 billion at the end of May, a reduction of $ 11 billion to six months, According to to data from the bank of Korea.
Friendly Regulatory Environment
On June 10, President Lee’s Democratic Party pass The Digital Asset Basic Act, which will allow companies with a minimum equity capital of $ 368,000 to issue stablecoins.
Companies need to maintain adequate reserves to ensure refunds, and they will need approval from the country’s financial regulator, the financial service commission.
Related: Kaia’s promises win-Pegged Stablecoin as South Korea Payment Stocks Rally
The FSC is Analysis of local South Korea exchanges On the transaction fees they charge, it is also part of Lee’s promise to lower transaction costs to encourage young businessmen.
The non-US dollar backed stablecoin
The tokens supported by the US dollar dominate the stablecoin space, with the greatest tether (USDT) with the market capitalization of the market $ 156 billionFollowing Circle’s USDC (USDC) with market capitalization of $ 61 billionAccording to Defillma.
However, the Euro-Pegged Stablecoin of Circle, EURC, is getting traction because its market capitalization has been shooting until $ 203 millionan increase of 156% from the start of the year.
Circle’s stock saw the huge advantages On Wednesday After US lawmakers have signed that they approve the Stablecoin-Regulation Genius Act at home.
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