The post Bank Of Korea Stablecoins Deemed Perilous By Union appeared on BitcoinEthereumNews.com.

The world of digital finance is constantly evolving, bringing with it both incredible innovation and significant challenges. At the heart of this evolving landscape are stablecoins – cryptocurrencies designed to maintain a stable value, often pegged to fiat currencies like the Korean Won. But what happens when the very institutions meant to safeguard economic stability voice serious concerns? A recent and compelling development has put the spotlight on Bank of Korea stablecoins, as the central bank’s own labor union has issued a stark warning, sparking a crucial debate about financial safety and the future of digital assets. Why the Alarm Over Bank of Korea Stablecoins? Unpacking the Union’s Concerns The opposition to Korean won-pegged stablecoins isn’t coming from external critics; it’s emanating from within the very institution tasked with maintaining financial stability: the Bank of Korea (BOK). According to a report by Yonhap Infomax on July 28, Kang Young-dae, the union leader, minced no words. He articulated a profound concern that stablecoins are rapidly morphing into a new iteration of “shadow banking.” So, what exactly does this mean? In essence, the union leader highlighted that these digital assets have the capacity to attract substantial funds without offering any interest to their holders, all while presenting a deceptive facade of being inherently safe assets. This dual nature — attracting capital without traditional banking oversight or interest payments, yet marketing themselves as secure — is precisely what triggers the “shadow banking” alarm. The union’s apprehension extends beyond just the concept of shadow banking. They’ve identified several layers of risk that could potentially unravel the perceived stability of these tokens: IT-Related Risks: Stablecoin issuers heavily rely on complex technological infrastructures. Any vulnerabilities, glitches, or cyberattacks on these systems could compromise the integrity and functionality of the stablecoins, leading to potential loss of access…

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Filed under: News - @ July 28, 2025 7:21 am