Bank of Korea Governor to Monitor Crypto Card Risks and AI Subscription Data

Bank of Korea Governor Shin Hyun-song announced plans to monitor the risks associated with overseas crypto cards and improve statistical tracking for AI service subscription fees during a National Assembly audit on October 12.

Regarding crypto cards, which use Bitcoin or stablecoins for payments, Governor Shin noted that because most providers are foreign entities operating primarily with dollar-based stablecoins, they present several risks. These include potential regulatory circumvention, high transaction fees due to additional intermediary steps, and difficulties in tracking domestic capital flows. There are also concerns regarding consumer protection in cases of hacking, bankruptcy, or frozen accounts, as well as potential gaps in customs reporting.

On the topic of artificial intelligence, Shin addressed the need to improve the collection of detailed statistics for AI subscription fees. While currently categorized under service trade statistics via credit card usage, it is difficult to isolate specific AI expenditures. Experts noted that while the current scale is relatively small, the rapid growth of AI subscription spending could potentially increase the service trade deficit in the future.