San Dai admitted that stabilcoins, provided with fiat currencies or precious metals, are widely used by crypto traders to move funds, and are already beginning to be in demand among companies. However, he expressed fears that the massive use of stablecoins could poorly affect the country’s credit-money policy and the calculation system. The manager of the Central Bank of South Korea Rhee Chang-Yong recently expressed similar fears, suggesting that stable cryptocurrencies can complicate supervision of foreign currencies.
To prevent the collapse of the financial market and protect users, San Dai called for the introduction of stablecoins gradually. This should be done by controlled banks, and only stablecoins tied to the state currency – Korean won can be released. Over time, stablecoins can spread to the non-bank sector, San Dai said.
He added that now the Central Bank is focused on the development of its own digital currency (CBDC). The Central Bank is already consulting with large commercial banks to prepare the second stage of testing of digital Vona. The first pilot test ends next week – this project was launched together with the Bank for International Settlements (BIS).
At the beginning of the year, Korea said that he would not add bitcoin to its strategic reserve due to the high volatility of the cryptocurrency and the inconsistency of the criteria for the International Monetary Fund (IMF) for foreign exchange reserves.
Source: Bits
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