South Korean Bankers Union: Stablecoins are actually a disguised form of deposit absorption, and there is a risk of bank runs

PANews reported on July 28 that according to Yonhap News Agency, the Korean Bankers' Union issued a strong warning on current hot issues such as the introduction of the Korean won stablecoin. Kang Young-dae (transliteration), chairman of the Korean Bankers' Union, issued a statement on the 28th, saying: "This virtual currency called stablecoin is appearing as a 'new disguised deposit-taking business', claiming to be a safe asset but absorbing public funds without paying interest. Its essence is exposed to the IT risks of the issuer, and it is always facing market, credit and operational risks - that is, it cannot ensure that the funds exchanged with virtual currencies can maintain their value through reserves. Once there is a problem of trust in the token issuer for any reason, it may trigger a 'run', which will cause the token issuer to sell its treasury bonds and consumers to suffer losses, which may bring shocks to the Korean economy at any time."