Won-based stablecoin: South Korean presidential candidate's initiative
Date: 2025-05-21 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
South Korean presidential candidate and Democratic Party leader Lee Jae-myung has proposed a stablecoin that will be pegged to the South Korean won. He calls the main goal of the project the need to preserve national assets within the country and reduce financial dependence on foreign currencies.
According to Lee Jae-myung, a stablecoin can increase the stability of the economy, limit the influence of international currencies, and ensure the safety of financial value. He argues that such an approach will be a strategic step in strengthening South Korea's financial sovereignty.
However, the initiative has caused a mixed reaction among experts. Thus, Shin Bo-seong, an analyst from the Korea Capital Market Institute, warns that the issuance of such assets by private entities could lead to an increase in the money supply and create risks associated with the loss of control over money emission. He believes that in the long term, this could weaken the state's role in managing the economy.
In parallel with the stablecoin proposal, the Democratic Party intends to submit a bill on digital assets. The document proposes the creation of a regulatory framework covering key aspects of digital assets, including their definition, issuance, circulation, and listing on exchanges. The goal is to formalize the market and protect the interests of investors.
Lee Jae-myung also unveiled a plan to create a unified system for monitoring cryptocurrency transactions and reducing associated costs. According to him, this will give users a more streamlined and accessible way to interact with digital assets, reducing barriers to entry.
One of the most discussed initiatives of the politician was the proposal to allow investment in cryptocurrency for institutional investors, including the National Pension Fund. However, this will only be possible if the market reaches a sustainable level and is assessed for stability.
Lee Jae-myung has previously voiced his support for crypto-asset-based exchange-traded funds (ETFs), emphasizing the importance of their introduction into the South Korean economy.
