{"id":129608,"date":"2025-05-20T10:15:45","date_gmt":"2025-05-20T10:15:45","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129608"},"modified":"2025-05-20T10:15:45","modified_gmt":"2025-05-20T10:15:45","slug":"south-korean-presidential-front-runner-proposes-won-based-stablecoin","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129608","title":{"rendered":"South Korean presidential front-runner proposes won-based stablecoin"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsSouth Korea\u2019s Democratic Party leader Lee Jae-myung proposed creating a stablecoin tied to the Korean won to prevent capital outflows and strengthen national financial sovereignty.<br \/>\nSpeaking during a recent policy discussion, Lee argued that a won-based stablecoin would allow South Korea to retain wealth domestically while reducing reliance on foreign-issued digital assets like USDt (USDT) and USDC (USDC), according to The Korea Herald.<br \/>\nCurrently, South Korean law prohibits the issuance of domestic stablecoins, forcing local exchanges to rely on US dollar-based alternatives.<br \/>\nBetween January and March, crypto exchanges in the country recorded 56.8 trillion won ($40.8 billion) in asset outflows, nearly half of which were linked to foreign stablecoins, the report said.<br \/>\n\u201cWe need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,\u201d Lee reportedly said.<br \/>\nRelated: Top South Korean presidential hopefuls support legalizing Bitcoin ETFs<br \/>\nSouth Korean candidates make pro-crypto promises<br \/>\nThe proposal is part of Lee\u2019s broader digital asset strategy, which includes legalizing spot cryptocurrency exchange-traded funds (ETFs).<br \/>\nBoth Lee and rival Kim Moon-soo of the People Power Party have pledged to support the introduction of spot crypto ETFs.<br \/>\nSource: Konstantin TkachukLee\u2019s campaign also calls for the National Pension Fund and other institutional players to be allowed to invest in cryptocurrencies once price stability criteria are met.<br \/>\nTo facilitate this, he proposed an integrated monitoring system and lower transaction fees, making crypto more accessible under government oversight.<br \/>\nHowever, the stablecoin proposal has sparked concern among economists. Shin Bo-sung, a senior Korea Capital Market Institute researcher, warned that stablecoins could inflate the money supply and shift monetary control to private issuers.<br \/>\n\u201cWe must not overlook the economic principles behind them. Stablecoins are essentially another form of banking, creating money out of nothing,\u201d Shin said.<br \/>\nRelated: RedotPay enters South Korea with crypto-powered payment cards<br \/>\nDemocratic Party sets up \u201cDigital Asset Committee\u201d<br \/>\nOn May 13, South Korea\u2019s Democratic Party launched a Digital Asset Committee focused on developing cryptocurrency policies and promoting industry growth.<br \/>\nThe committee, which held its inaugural meeting at the National Assembly Members\u2019 Hall in Seoul, highlighted the importance of resolving regulatory uncertainty and addressing issues like\u00a0stablecoin regulation.<br \/>\nThe new committee joins similar organizations in South Korea, including the\u00a0Virtual Asset Committee\u00a0launched in late 2024 and another public-private crypto task force\u00a0introduced in 2022, both initiated by the Financial Services Commission (FSC).<br \/>\nThe Democratic Party is also set to introduce the Digital Asset Basic Act. The bill would establish a legal framework for cryptocurrencies and stablecoins, requiring issuers to hold at least 50 billion won in reserves and gain approval from the FSC.<br \/>\nMagazine: Father-son team lists Africa\u2019s XRP Healthcare on Canadian stock exchange<a href=\"https:\/\/cointelegraph.com\/news\/korea-stablecoin-proposal-lee-jae-myung?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsSouth Korea\u2019s Democratic Party leader Lee Jae-myung proposed creating a stablecoin tied to the Korean won to prevent capital outflows and strengthen national financial sovereignty. Speaking during a&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129608"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129608"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129608\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129608"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}