South Korea's central bank has issued a warning about the potential depegging risks associated with won-denominated stablecoins. The Bank of Korea (BOK) emphasized the importance of traditional banks taking a leading role in the issuance of these stablecoins to mitigate risks. The BOK referenced past incidents such as the Terra/Luna collapse and the decline of USDC during the Silicon Valley Bank crisis as examples of the vulnerabilities in the stablecoin market.
The central bank's report calls for enhanced inter-agency coordination to address these risks and highlights Project Hangang, a pilot initiative aimed at developing bank-issued digital deposit tokens. This project is part of a broader effort to ensure stability and trust in the digital currency ecosystem by leveraging the established infrastructure and regulatory frameworks of traditional banking institutions.
South Korea's Central Bank Warns of Stablecoin Depegging Risks
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
