Bank of Korea Considers Won-Pegged Stablecoin Amid Foreign Exchange Concerns Kraken Launches Bitcoin Staking Feature With Babylon Integration Tether CEO Announces PearPass Password Manager After 16 Billion Passwords Leaked

The Bank of Korea has indicated a willingness to consider a won-pegged stablecoin, although the central bank's governor has expressed concerns about the potential challenges it could pose to foreign exchange management. Governor Rhee Chang-yong noted that such a stablecoin could inadvertently increase reliance on U.S. dollar-backed tokens, complicating South Korea's efforts to manage its foreign reserves. This development comes as the newly elected president, Lee Jae-myung, advances a broader agenda for crypto regulation. South Korea's foreign exchange reserves have decreased from $415.6 billion at the end of December to $404.6 billion in May, raising concerns about long-term currency stability.

Kraken has introduced a new bitcoin staking feature that allows users to lock up their BTC directly on the native Bitcoin blockchain. This service is facilitated through an integration with Babylon, a protocol designed to enable staking on Bitcoin without requiring tokens to leave the chain. Babylon allows users to stake their BTC to support proof-of-stake (PoS) blockchains, earning rewards in BABY, the native token of Babylon Genesis, a Bitcoin-secured Layer 1 network. Mark Greenberg, Kraken’s head of consumer, highlighted that this feature enables clients to earn a return on their BTC while supporting emerging PoS blockchains. Users must lock their BTC in a custodial vault to participate, with an approximate 7-day wait to unstake their coins.

Tether CEO Paolo Ardoino has called for an end to the practice of storing passwords in the cloud, announcing the upcoming launch of PearPass, a fully local, open-source password manager. This announcement follows what experts are calling the largest data breach in history, with over 16 billion passwords tied to platforms like Apple, Google, and Facebook being leaked. Ardoino emphasized the failure of cloud storage, stating that PearPass will store all passwords and encryption keys on the user’s own device, eliminating exposure to centralized servers. This move aims to prevent future data breaches and enhance cybersecurity.