Won't KRW be a coin? I once answered.

Won't KRW be a coin? I once answered.
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RP purchases boost stock markets + pension fund's dollar sell-off defends exchange rate
→ Both policies work together to try to stabilize the market

RP: Risk of KRW depreciation due to excessive KRW liquidity supply
Pension fund intervention: risk of falling foreign reserves
→ Both policies are not sustainable in the long run

Coin Exchange (Bank of Korea)
Traders' coins (bonds)
"Promising to sell again at this price later" and giving stablecoins (cash)

Flow of liquidity supply:
It's similar to an exchange releasing a large amount of stablecoins into the market
Traders Can Buy Other Coins With This Stablecoin
The effect of increasing the price of the entire coin market as a result

Potential risk:
Exchange Issuing Excessive Stablecoins (Printing Money)
The market is booming in the short term
But in the long run, there is a risk that stablecoins will fall in value (the won's value)
Like the Terra/Luna crisis, the possibility of a system collapse

Differences:
Coin Market Has No Regulation, but Bank of Korea Is a Credible Institution
However, excessive liquidity supply could pose similar risks
In the case of the coin, the collapse may happen more sharply, but currency depreciation is slower to move forward with RP buying to boost stock markets + defend the exchange rate with pension fund selling dollars
→ Both policies work together to try to stabilize the market

RP: Risk of KRW depreciation due to excessive KRW liquidity supply
Pension fund intervention: risk of falling foreign reserves
→ Both policies are not sustainable in the long run

Coin Exchange (Bank of Korea)
Traders' coins (bonds)
"Promising to sell again at this price later" and giving stablecoins (cash)

Flow of liquidity supply:
It's similar to an exchange releasing a large amount of stablecoins into the market
Traders Can Buy Other Coins With This Stablecoin
The effect of increasing the price of the entire coin market as a result

Potential risk:
Exchange Issuing Excessive Stablecoins (Printing Money)
The market is booming in the short term
But in the long run, there is a risk that stablecoins will fall in value (the won's value)
Like the Terra/Luna crisis, the possibility of a system collapse

Differences:
Coin Market Has No Regulation, but Bank of Korea Is a Credible Institution
However, excessive liquidity supply could pose similar risks
In the case of the coin, the collapse may happen more sharply, but the currency depreciation proceeds more slowly