South Korean Central Bank Concerned About Stablecoins
Date: 2023-12-15 Author: Dima Zakharov Categories: IN WORLD
The Challenge of Stablecoins
The surge in popularity of stablecoins, which are cryptocurrencies pegged to fiat currencies like the US Dollar (USD) or Euro (EUR), has become a hot topic of discussion this week. A few days ago, the rating agency S&P introduced a scoring system to evaluate this stability aspect. Tether (USDT), one of the largest stablecoins globally, received a score of 2 out of 5 on this scale.
None of the eight evaluated digital coins managed to secure the highest rating from the agency, sparking intense debates within the cryptocurrency community and among numerous financial regulators.
South Korea's Response
Governor Lee also mentioned that the Bank of South Korea is actively working on a wholesale CBDC pilot project. The country's central regulator plans to launch a pilot scheme involving digital currency for retail transactions, with the participation of 100,000 people, as early as 2024. Additionally, South Korea is actively researching the tokenization of real-world assets (RWA), a rapidly growing trend worldwide.
