Korea plans to include central bank deposits in stablecoin reserves
The Bank of Korea has proposed a rather interesting idea: allowing central bank deposits to be included in stablecoin reserves to protect users.
The background of this proposal is the increasing global concern over the transparency and safety of stablecoin reserves. Many national regulatory agencies are considering how to ensure that stablecoins can truly be exchanged 1:1, without the risk of a bank run.
The Bank of Korea's idea is that if stablecoin issuers can place part of their reserves in the central bank, security would be greatly improved. Central bank deposits basically have no default risk and offer the best liquidity. This way, even in extreme situations, users' funds can be fully protected.