Bank of Korea (BOK) Gov. Rhee Chang-yong highlighted the rapid evolution of the digital financial landscape and its implications for central banks worldwide at a conference, "Digital Money: Navigating a Changing Financial Landscape," last Friday.
What Happened: Rhee emphasized the growing influence of stablecoins such as USDT (CRYPTO: USDT) and USDC (CRYPTO: USDC) on traditional banking operations.
"The proliferation of stablecoins, such as USDT and USDC, poses new challenges to central banking operations. Despite their name, stablecoins often lack stability, raising concerns about financial stability. Their widespread adoption could diminish the role of central bank money and impair the effectiveness of monetary policies," Yonhap News Agency quoted Rhee as saying.
Rhee pointed out the ...