WON Stablecoin: BOK Governor Issues Stark Alert About Capital Flight Threat

crypthub

2 days ago

Governor Lee’s Warning

The Bank of Korea governor cautioned that a freely issued won stablecoin could trigger capital flight and destabilize the foreign‑exchange market. He warned that unchecked outflows would increase exchange‑rate volatility and threaten financial stability. His remarks were made during a parliamentary audit of the Strategy and Finance Committee.

Phased Rollout Strategy

Lee proposes a gradual, bank‑centered rollout, starting with commercial banks issuing and managing the stablecoin. This controlled environment would let authorities monitor foreign‑exchange movements and address risks early. Successful pilot phases could later expand the digital won to broader usage.

Implications and Outlook

South Korea aims to balance digital‑currency innovation with economic security, reflecting global central‑bank trends. A regulated stablecoin could offer faster, cheaper transactions without compromising stability. Careful planning and oversight are essential for the won digital currency to support long‑term growth.