The pinnacle of South Korea’s central financial institution has reportedly mentioned he isn’t towards the nation issuing a won-based stablecoin, however remains to be involved about managing the international change of the token.

Reuters reported on Wednesday that Financial institution of Korea Governor Rhee Chang-yong mentioned at a press convention that “issuing won-based stablecoin could make it easier to exchange them with dollar stablecoin rather than working to reduce use of dollar stablecoin.”

That in flip might enhance demand for greenback stablecoin and make it tough for us to handle foreign exchange,” he added.

Rhee’s remark comes as South Korea’s newly elected president, Lee Jae-myung, is transferring forward with crypto regulation as promised throughout his marketing campaign and because the nation’s foreign exchange reserve is dwindling.

On the finish of December, the Financial institution of Korea had foreign exchange reserves value $415.6 billion, which dropped to $404.6 billion on the finish of Might, a lower of $11 billion in six months, in accordance to information from the Financial institution of Korea.

Pleasant regulatory setting

On June 10, President Lee’s ruling Democratic Celebration put ahead the Digital Asset Primary Act, which might permit corporations with a minimal fairness capital of $368,000 to challenge stablecoins.

The businesses would want to maintain enough reserves to make sure refunds, and they’ll want approval from the nation’s monetary regulator, the Monetary Companies Fee.

Associated: Kaia pledges won-pegged stablecoin as South Korean fee shares rally 

The FSC is probing native South Korean exchanges over the transaction charges they cost, which can also be a part of Lee’s promise to decrease the transaction prices to encourage younger merchants.

Non-US dollar-backed stablecoin

US dollar-backed tokens dominate the stablecoin area, with the most important being Tether (USDT) with a market capitalization of $156 billion, adopted by Circle’s USDC (USDC) with a market capitalization of $61 billion, in accordance with DefiLlama.

Nevertheless, Circle’s euro-pegged stablecoin, EURC, is gaining traction as its market capitalization has shot as much as $203 million, a rise of 156% from the beginning of the 12 months.

Circle’s inventory noticed massive positive aspects on Wednesday after US lawmakers signalled that they’d approve the stablecoin-regulation GENIUS Act within the Home.

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