The President of the USD Coin (USDC) issuer Circle Heath Tarbert has held stablecoin-themed meetings with some of South Korea’s top bankers.
The South Korean media outlet Biznews reported that Tarbert arrived in the nation on August 21.
The Circle chief met with the central Bank of Korea (BOK) Governor Rhee Chang-yong the following day.
Tarbert also met Shinhan Financial Group’s Chairman Jin Ok-dong, as well as KEB Hana Financial Group’s Vice Chairman Lee Seung-yeol, the Woori Bank President Chung Jin-wan, and the KB Financial Group Chief Digital Officer Lee Chang-kwon.
Circle: Korea Meetings Focus on KRW-pegged Stablecoins
In addition, Tarbert met the Hyundai Card Vice Chairman Chung Tae-young. The meeting with the latter is significant: No other domestic credit card company spoke to the Circle chief during his visit to Seoul.
Bank of Korea Governor Rhee Chang-yong speaks about stablecoins at the National Assembly earlier this month. (Source: JTV/Screenshot)
Tarbert also met Kim Seo-jun, the CEO of Hashed, South Korea’s largest blockchain venture capital firm.
The media outlet reported that the Circle chief “discussed cooperation plans related to stablecoins” with all the officials, as Seoul prepares to roll out stablecoin regulations.
Tarbert reportedly kicked off his visit with a meeting with senior executives of three of the country’s biggest crypto exchanges, namely: Upbit, Bithumb, and Coinone.
Regulatory Concerns
Tarbert reportedly spoke with BOK Governor Rhee about “regulatory issues related to international stablecoin transactions.”
The duo also reportedly discussed possible cooperative measures to promote KRW-pegged stablecoins, as well as Governor Rhee’s concerns about stablecoin adoption.
The BOK has previously said it worries that KRW stablecoins may increase financial instability and diminish the effectiveness of monetary and foreign exchange policy.
Rhee has opined that stablecoins would essentially create private currencies, breaking the BOK’s monopoly on currency issuance.
However, Hankyoreh reported that the adoption of won-denominated stablecoins “already appears to be an irreversible trend.”
Indeed, there is now cross-party agreement on stablecoin regulation in the National Assembly. President Lee Jae-myung, a vociferous stablecoin advocate, has asked the government to fast-track adoption measures.
In the wake of this pressure, Hankyoreh wrote, the BOK “has backed down.” Then BOK has since admitted that it is “necessary to prepare for the digitalization of future currencies.”
But the BOK is still adamant that only commercial banks should be allowed to issue coins.
It wants to exclude fintech and IT firms from issuing tokens, arguing that failure to do so will compromise financial stability and consumer protection.
Critics of this stance say that such a move will stifle innovation, creativity, and competition in the sector.
The market capitalization of the USDC stablecoin over the past 12 months. (Source: CoinGecko)
USD Stablecoin Adoption Also on Agenda
The meeting with Shinhan’s Jin, meanwhile, reportedly focused on the domestic distribution of dollar-pegged stablecoins,” in addition to KRW-pegged coins and international remittances.
Tarbert was quoted as saying:
“It is crucial for South Koreans to have access to stablecoins denominated in their own currency when buying and selling digital assets or making international remittances. People looking to buy goods and services in South Korea may want to use a KRW-denominated stablecoin. As long as it is properly regulated, there’s no reason not to use such a coin.”
The media outlet added that Circle is “reportedly conducting an unofficial recruitment process, looking for personnel to run its domestic won-pegged stablecoin business operations.”
Biznews quoted an unnamed crypto industry official as saying:
“Since we are still without any stablecoin-related legislation in South Korea, the Tarbert meetings focused on establishing a foundation for cooperation. We are expecting to see new opportunities for the domestic financial sector to enter the stablecoin business and begin full-scale, global cooperation.”
In the US, a recent Goldman Sachs report predicted that the stablecoin market could soon be worth trillions of dollars.
The United States Treasury Secretary Scott Bessent recently claimed that stablecoins would play a role in boosting demand for government bonds.
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