Lee Jae-Myung, leader of the Democratic Party in South Korea, suggested making a stable coin connected to the Korean to stop capital outflows and strengthen national financial sovereignty.
During a recent discussion within the political discussion, Lee argued that a won-based StableCoin South Korea would enable the assets to be kept in Germany and at the identical time reduce confidence in foreign digital assets comparable to USDT (USDT) and USDC (USDC), in line with the Korea Herald.
South Korean law currently prohibits the difficulty of domestic tablecoins and forces local exchange to depend on US dollar-based alternatives.
Between January and March, the crypto exchange within the country recorded 56.8 trillion WON (40.8 billion US dollars) in assets, almost half of which were related to foreign stable coins, the report says.
“We should construct a stablecoin market won to stop national assets from coming overseas,” said Lee reportedly.
South Korean candidates make pro-crypto promise
The proposal is an element of Lee's wider digital asset strategy, which incorporates the legalization of Spot Cryptocurrency Exchange Fund (ETFs).
Both Lee and the Rival Kim Moon-Soo from The People Power Party have undertaken to support the introduction of spot crypto ETFs.
Source: Konstantin Tkiuk
Lee's campaign also calls for the National Pension Fund and other institutional actors to take a position in cryptocurrencies as soon as the value stability criteria are met.
To make this easier, he proposed an integrated surveillance system and lower transaction fees, which made crypto more accessible as a part of the state supervision.
However, the StableCoin proposal triggered the concerns of the economists. Shin Bo-Sung, a senior researcher of the Korea Capital Market Institute, warned that stable coins could shift the cash supply and money control to personal issuers.
“We must not overlook the economic principles. Stable coins are essentially a distinct type of banking and create money out of nowhere,” said Shin.
The Democratic Party sets up “Digital Asset Committee”
On May 13, the Democratic Party of South Korea began a Digital Asset Committee that focused on the event of cryptocurrency guidelines and the promotion of industry growth.
The committee, which held its opening session on the Hall of the National Assembly in Seoul, emphasized the importance of solving regulatory uncertainties and the treatment of problems comparable to stablecoin regulation.
The recent committee is competing in South Korea, including the Virtual Asset Committee, initiated at the top of 2024 and one other public-private Krypto-Task Force, which was introduced in 2022 and each were initiated by the Financial Services Commission (FSC).
The Democratic Party may even introduce the Digital Asset Basic Act. The laws would determine a legal framework for cryptocurrencies and stable coins, wherein the issuers hold at the very least 50 billion won reserves and receive approval from the FSC.
