TechFlow reports, according to local media, that South Korea's central bank governor Lee Chang-yong warned the rise of stablecoins could pose a significant threat to the traditional role of central bank money and affect the effectiveness of monetary policy. Central banks must accelerate efforts to issue central bank digital currencies (CBDCs) in both retail and wholesale forms to mitigate this imminent threat.
He highlighted South Korea's own initiatives in this area, including pilot projects for a retail CBDC system utilizing distributed ledger technology (DLT). The programmability of such currency, enabling complex and conditional transactions via smart contracts, was particularly noted as a significant advantage.
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