The Bank of Korea (BOK) has urged lawmakers to adopt a bank-led model for stablecoin issuance ahead of the upcoming regulatory framework, warning that Korean Won (KRW)-pegged tokens could “repeat past monetary failures.”

BOK Raises Financial Stability Concerns

On Monday, the Bank of Korea released a 140-page report warning that stablecoins could unlock new possibilities for the Korean economy but could also “sow the seeds of new instability.”

According to local news media outlets, the central bank urged lawmakers to carefully review won-pegged digital assets ahead of the release of the long-awaited regulatory framework, listing multiple risks that these tokens could pose to financial and monetary stability.

As reported by Bitcoinist, Financial Services Commission (FSC) Chairman Lee

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