TechFlame reports that Han Ji Hoon - The Bank of Korea (“Bank of Korea”) is urging the National Assembly to strengthen the regulation of US dollar stablecoins on the grounds that their massive popularity is threatening South Korea's monetary sovereignty. It is worth noting that this appeal comes at a time when representatives of Circle, the main US stablecoin issuer USDC, are about to hold a series of talks with senior Korean commercial banks. Bank of Korea emphasized, “The Government and National Assembly urgently need to amend the Foreign Exchange Transactions Law and other related laws.” Bank of Korea is particularly concerned that the popularity of US dollar stablecoins may trigger the phenomenon of “currency substitution,” which will have a negative impact on the effectiveness of monetary policy and monetary sovereignty. Furthermore, Bank of Korea assessed that “the outflow of US dollars through stablecoins may also increase instability in the foreign exchange market.”