The pinnacle of South Korea’s central financial institution has reportedly mentioned he isn’t in opposition to the nation issuing a won-based stablecoin, however remains to be involved about managing the overseas alternate 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 might make it simpler to alternate them with greenback stablecoin reasonably than working to scale back use of greenback stablecoin.”
That in flip might improve 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 shifting 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 price $415.6 billion, which dropped to $404.6 billion on the finish of Could, a lower of $11 billion in six months, in line with information from the Financial institution of Korea.
Pleasant regulatory atmosphere
On June 10, President Lee’s ruling Democratic Get together put ahead the Digital Asset Primary Act, which might enable corporations with a minimal fairness capital of $368,000 to challenge stablecoins.
The businesses would wish to maintain ample reserves to make sure refunds, and they’re going to want approval from the nation’s monetary regulator, the Monetary Providers Fee.
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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 house, 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 line with DefiLlama.
Nonetheless, 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 large good points on Wednesday after US lawmakers signalled that they might approve the stablecoin-regulation GENIUS Act within the Home.
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