Recently, the Central Bank of Korea expressed important views on policies related to Crypto Assets. The bank clearly stated its opposition to the proposal of issuing short-term government bonds to activate the Korean won stablecoin, believing that this could have an adverse impact on the financial market.

The Bank of Korea clarified its position through a written response submitted to the National Assembly's Planning and Finance Committee. The central bank emphasized that the scale and duration of government bond issuance should be based on meeting the demand for fiscal funds. Issuing short-term government bonds to meet specific market demands (such as stablecoin) is considered inappropriate.

The central bank specifically pointed out that increasing the issuance of short-term government bonds may bring additional pressure to refinancing and market absorption, thereby affecting the stability of fiscal funding procurement. This view effectively refutes the suggestions of some individuals regarding the issuance of short-term government bonds to support the Crypto Assets market.

The statement from the South Korean central bank reflects its emphasis on maintaining financial market stability, while also demonstrating a cautious attitude towards the potential risks in the emerging financial technology sector. This decision may have an impact on the development direction of the crypto assets market in South Korea and even globally.

With the continuous development of digital currencies and blockchain technology, central banks and regulatory authorities in various countries are facing new challenges in policy formulation. This statement from the Bank of Korea may trigger more discussions on how to balance innovation and risk control.