On the eve of Circle's visit to South Korea, the Bank of Korea called on the National Assembly to ＂urgently regulate US dollar stablecoins.＂
Han Zhixun - the Bank of Korea (hereinafter referred to as "Han Yin") urged the National Assembly to strengthen regulation of the US dollar stablecoin, on the grounds that its widespread use is threatening South Korea's monetary sovereignty. It is worth noting that this call comes as representatives of the major US dollar stablecoin USDC issuer Circle are about to hold a series of talks with senior executives of South Korean commercial banks.
Han Yin emphasized: "The government and the National Assembly urgently need to revise relevant laws such as the Foreign Exchange Transactions Act." Han Yin is particularly concerned that the widespread use of US dollar stablecoins may trigger a "currency substitution" phenomenon, thereby negatively impacting the effectiveness of monetary policy and monetary sovereignty.
In addition, Han Yin assessed: "The outflow of US dollars through stablecoins may also exacerbate instability in the foreign exchange market."
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