South Korea Develops Regulatory Framework for Stablecoins

According to PANews, South Korea's central bank governor, Lee Chang-yong, announced that the bank is collaborating with relevant agencies to establish a regulatory framework for stablecoins. This initiative aims to ensure the stability and practicality of stablecoins while preventing their use in circumventing foreign exchange controls. Lee highlighted that although stablecoins have spurred innovation in the fintech sector, their potential as substitutes for legal tender has raised regulatory concerns. Additionally, Lee mentioned that the Bank of Korea is participating in the Bank for International Settlements' (BIS) Agorá project. This public-private partnership focuses on tokenized bank deposits and institutional central bank digital currencies (CBDCs), aiming to build a global digital financial infrastructure and reduce cross-border payment costs.