Circle CEO Tarbert Meets South Korean Leaders to Push KRW Stablecoin Regulation

Circle’s chief executive, Heath Tarbert, has been actively engaging with top South Korean financial leaders to discuss the development and regulation of stablecoins, highlighting the country’s growing interest in digital currency innovation. Tarbert’s meetings began on August 21, during a trip to Seoul, where he met with key figures including Bank of Korea Governor Rhee Chang-yong the following day [1]. This engagement is part of broader discussions as South Korea prepares to roll out formal stablecoin regulations.

During the visit, Tarbert met with senior executives from major South Korean financial institutions, including Shinhan Financial Group’s Chairman Jin Ok-dong, KEB Hana Financial Group’s Vice Chairman Lee Seung-yeol, and Woori Bank President Chung Jin-wan. The meetings also included KB Financial Group’s Chief Digital Officer Lee Chang-kwon and Hyundai Card Vice Chairman Chung Tae-young, marking the only credit card company engagement during the trip [1]. Tarbert also met with Kim Seo-jun, CEO of Hashed, a leading blockchain venture capital firm in South Korea [1].

The discussions reportedly centered on cooperation plans related to stablecoins, particularly those pegged to the South Korean won (KRW). Tarbert and Governor Rhee explored regulatory issues surrounding international stablecoin transactions and potential strategies to promote KRW-pegged stablecoins. The Bank of Korea has expressed concerns that such coins could threaten financial stability and the effectiveness of monetary and foreign exchange policies. Rhee has noted that stablecoins may create private currencies, challenging the central bank’s monopoly on currency issuance [1].

Despite these concerns, South Korean media outlets have reported that the adoption of KRW-pegged stablecoins is seen as an irreversible trend. There is now cross-party support for stablecoin regulation in the National Assembly, with President Lee Jae-myung advocating for faster adoption measures. While the Bank of Korea has softened its stance and acknowledged the need to prepare for the digitalization of future currencies, it remains firm on its position that only commercial banks should be allowed to issue stablecoins, excluding fintech and IT firms from participating in token issuance [1].

Tarbert also addressed the domestic and international use of stablecoins, emphasizing the importance of KRW-denominated coins for South Koreans buying and selling digital assets or making international remittances. He stated that, when properly regulated, there is no reason to avoid using such coins. A crypto industry official noted that the meetings were aimed at building a foundation for future cooperation and opening new opportunities for the domestic financial sector to enter the stablecoin space [1].

Circle is reportedly exploring the possibility of launching a KRW-pegged stablecoin in South Korea, with an unofficial recruitment process underway to find personnel to manage domestic operations. As stablecoins gain traction globally, a recent Goldman Sachs report predicted that the market could grow to be worth trillions of dollars in the near future. Meanwhile, U.S. Treasury Secretary Scott Bessent has highlighted the potential role of stablecoins in boosting demand for government bonds [1].

Source: [1]Circle Chief Tarbert Holds Stablecoin Meetings With Top South Korean Bankers (https://cryptonews.com/news/circle-chief-tarbert-holds-stablecoin-meetings-with-top-south-korean-bankers/)