South Korea’s central bank chief, Rhee Chang-yong, is okay with creating a stablecoin tied to the Korean currency, the won. But he is worried that it could mess with the country’s foreign money management.
He said at a press conference that a won-based stablecoin might make it easier to trade with U.S. dollar stablecoins like Tether and USDC. But this could increase demand for dollar stablecoins by making it harder to control South Korea’s foreign cash reserves.
These reserves dropped by $11 billion, from $415.6 billion in December 2024 to $404.6 billion by May 2025. As per the reports, this idea fits with the new President Lee Jae-myung’s plan to support cryptocurrencies. On June 10, his party proposed a law called the Digital Asset Basic Act.
It lets companies with at least $368,000 in funds create stablecoins if they keep enough money in reserve and get approval from the Financial Services Commission, South Korea’s financial regulator.
South Korea’s financial regulator, the Financial Services Commission (FSC), is looking into local crypto exchanges to lower trading fees, making it easier for young people to trade, as promised by President Lee Jae-myung.
Worldwide, stablecoins tied to the U.S. dollar, like Tether (USDT) with a $156 billion market value and Circle’s USDC with $61 billion, are the most popular, according to DefiLlama. However, other stablecoins are also growing, like Circle’s euro-based EURC, which has increased 156% to $203 million in the year 2025.
In the U.S., a new law called the GENIUS Act is moving forward to regulate stablecoins, boosting Circle’s stock price. South Korea wants its currency-based, the stablecoin aims to strengthen the country’s financial system and reduce dependence on foreign currencies, such as the U.S. dollar.
Governor Rhee, the leader of the central bank, has cautioned that stringent regulations are necessary to prevent issues with Korea’s foreign cash reserves. The country’s crypto plans could set the precedent in Asia, though investors are advised to remain vigilant.
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