Lee Chang-yong, the Governor of the Bank of Korea, and Christopher Waller, a member of the Federal Reserve Board, expressed conflicting views on stablecoins. Governor Lee showed a cautious attitude, worrying about the potential impact on the capital market, while Waller evaluated it positively in terms of reducing transaction expenses.
During the opening session of the 'BOK International Conference' held at the Bank of Korea's annex conference room in Jung-gu, Seoul, on the morning of the 2nd, Governor Lee and Waller discussed monetary policies of the two central banks and expressed their views on stablecoins.
Waller noted that if stablecoins are introduced, the transaction fees in the United States would decrease. He said, "The U.S. is a country with high payment fees, especially for overseas transactions," adding that "the introduction of stablecoins could be positive in terms of lowering private expenses."
He particularly assessed that stablecoins could create new competition in the U.S. payment system. Waller stated, "If stablecoins are introduced, payments will not be monopolized by banks, and the private sector will also be able to participate," noting that "this is positive in terms of creating a level playing field."
On the other hand, Governor Lee said a more cautious approach is necessary. He noted, "We need to consider various aspects of whether to introduce stablecoins denominated in won only to banks or also to non-banks," adding that "Korea, unlike the United States, can implement capital controls, so it is a more cautious situation."
The two also showed different positions regarding central bank digital currency (CBDC). Waller mentioned, "I believe CBDC won't be a significant benefit to the existing U.S. payment system," adding that "(in this regard) globally, I've heard that discussions on CBDC are not actively taking place except for the European Central Bank (ECB)."
However, Governor Lee evaluated that CBDC would help reduce international transaction fees. In the past, he has argued that using CBDC would be preferable for the transparency of financial and foreign exchange markets and the effectiveness of monetary policy compared to stablecoins.
Furthermore, Governor Lee viewed the international project 'Agora' based on CBDC positively. The Agora project aims to effectively improve payment transactions between trading countries, involving the central banks of seven nations: the U.S., France, the United Kingdom, Japan, Switzerland, Korea, and Mexico.