South Korea Raises Concerns Over Stablecoin’s Impact on Won Exchange Rates

The South Korean government is expressing alarm over the potential destabilizing effects of stablecoins on its national currency, the won. The Ministry of Economy and Finance has identified dollar-pegged stablecoins as a growing threat to won stability in global markets. Officials believe that increased use of these digital assets for cross-border payments could weaken the won, leading to increased exchange rates.