The Bank of Korea (BOK) has once again called for the issuance of won stablecoins led by commercial banks, warning that private issuance could weaken monetary policy effectiveness and pose risks to foreign exchange and financial stability. In a report submitted to Congress, the BOK referred to the won stablecoin as a "quasi-monetary substitute," stating that its launch must balance monetary policy and foreign exchange stability. The central bank indicated that stablecoins could be used to circumvent foreign exchange reporting requirements, and allowing non-bank institutions to issue independently might conflict with Korea’s "separation of banking and commerce" principle. The report recommends prioritizing the issuance of stablecoins by banks subject to capital and compliance regulations, and whether to open issuance to non-banks should be gradually considered after risk assessments. (Cointelegraph)