Report: Bank of Korea Chief Says Growing Use of Stablecoins Threatens Central Bank Operations

The Bank of Korea politician Rhee Chang-yong precocious stated that the increasing stablecoin usage threatens the operations of cardinal banks. The imaginable engagement of planetary networks similar Visa and Mastercard successful the stablecoin concern volition apt undermine the monetary independency of countries similar South Korea.

Central Banks Urged to Prepare for Digitization

The increasing usage of stablecoins similar USDT and USDC is posing a caller menace to the operations of cardinal banks and whitethorn beryllium making monetary policies little effective, according to Rhee Chang-yong, the politician of the Bank of Korea. Speaking astatine a caller integer wealth conference, Chang-yong urged cardinal banks to hole for digitization if they privation to support abreast with the fast-changing fiscal landscape.

A Yonhap report states that the BOK politician believes planetary networks specified arsenic Visa and Mastercard’s apt engagement with stablecoins volition undermine countries similar South Korea’s monetary independence. Therefore, to halt stablecoins from wreaking havoc connected his country’s superior inflows, Chang-yong projected launching cardinal slope integer currencies (CBDCs).

“This underscores the urgency for cardinal banks to see introducing cardinal slope integer currencies (CBDC), whether retail oregon wholesale,” the BOK politician reportedly said.

While helium conceded that retail CBDCs whitethorn person nary wide vantage implicit regular outgo methods, Chang-yong insisted that their programmability diagnostic allows specified integer currencies to bring with them “a realm of possibilities.” One specified anticipation is the execution of analyzable and conditional transactions automatically via astute contracts.

Meanwhile, the BOK besides revealed that South Korea, which has already launched a aviator task for a retail CBDC system, is moving connected a wholesale aviator project. The South Korean Central Bank’s partners for the task see the Bank for International Settlements (BIS) and fiscal regulators.

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