- Korea advances won-backed stablecoin legislation under key leaders’ guidance.
- Potential market shifts and financial framework transformations expected.
- Efforts aim to uphold economic sovereignty with financial innovations.
Democratic Party lawmakers in Korea, including Ahn Deok-gil and Min Byung-deok, are spearheading new stablecoin legislation, with President Lee Jae-myung’s backing, driving a significant policy shift.
A fully-backed won stablecoin aims to enhance Korea’s digital economy, combat dollar dominance in stablecoins, and prevent Korean won marginalization in decentralized finance platforms.
The South Korean government is drafting legislation for won-backed stablecoins, led prominently by Democratic Party lawmakers. Rep. Ahn Deok-gil and Min Byung-deok, alongside President Lee Jae-myung, spearhead efforts to anchor national currency in digital finance.
This legislative move, supported by President Lee’s campaign pledges, involves Kim Yong-beom, the chief policy aide and blockchain expert. The bill mandates that stablecoins be issuable only by financial institutions meeting strict standards.
The legislation could significantly influence Korea’s financial market, ensuring that stablecoins are fully backed and secure. Issuers face strict compliance requirements, including a minimum capital requirement of 5 billion won.
Political, social, and economic shifts are anticipated, as stablecoins are positioned to become an integral component of Korea’s economic strategy. These developments aim to mitigate risks associated with foreign currency-dominated stablecoins.
The legislation positions Korea to lead in stablecoin adoption, potentially affecting domestic DeFi markets and cross-border transactions.
Experts foresee transformative financial impacts and a boost in monetary sovereignty. Historical precedents suggest Korea could influence global crypto regulations, paralleling the United States’ and EU’s existing frameworks for digital assets.
Ahn Deok-gil, Member of the National Assembly, Democratic Party – “This bill was developed through the Democratic Party’s Future Economic Growth Strategy Committee and directly reflects one of President Lee’s presidential pledges… Stablecoins are no longer experimental. They are becoming the lifeblood of digital economies and the frontline of monetary sovereignty. Just as the United States is moving forward with a digital dollar, it’s time for Korea to lead with a stablecoin backed by the won.”
