The leader of South Korean’s democratic party Lee Jae-Myung has suggested to create a Stablecoin tied to Korean who won to prevent capital flowing and strengthen national financial sovereignty.
Speaking During a recent policy discussion, Lee argued that a Stablecoin-based winner would allow South Korea to maintain wealth indoors while reducing hopes of foreign released digital assets such as USDT (USDT) and USDC (USDC) According to In the Korea Herald.
Currently, South Korean law prohibits the release of domestic stablecoins, forcing local exchanges to rely on alternatives based on US dollars.
Between January and March, crypto exchanges in the country recorded 56.8 trillion wins ($ 40.8 billion) in the asset flow, about half of it linked to foreign stablecoins, the report said.
“We need to establish a Winning Stablecoin Market back to prevent national wealth from leaking overseas,” Lee said.
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South Korea candidates have made pro-cries promises
The proposal is part of the wider approach to Lee’s digital asset, which includes Legalizing Spot CryptoCurrency Exchange-Traded Funds (ETF).
Both Lee and Rivals Kim Moon-soo of People Power Party Promised to support The introduction of Crypto ETF spots.
Lee’s campaign also called for the National Pension Fund and other institution players who were allowed to invest in cryptocurrencies once the price stability standards met.
To facilitate this, he suggested an integrated monitoring system and lower transaction fees, making crypto easier to access under government supervision.
However, the StableCoin proposal has brought about economists. Shin Bo-Sung, a senior researcher of the Korea Capital Market Institute, has warned that Stablecoins can provoke money supply and transfer financial control to private providers.
“We should not overlook the principles of the economy behind them. Stablecoins are essentially another form of banking, which creates money in nothing,” Shin said.
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The Democratic Party sets the “Digital Asset Committee”
On May 13, South Korea’s democratic party Launched a Digital Asset Committee Focused on developing cryptocurrency policies and promoting industry growth.
The Committee, which held the inaugural meeting at the National Assembly Members’ Hall in Seoul, emphasized the importance of resolving uncertainty in regulatory and addressing issues such as Stablecoin regulation.
The new committee joins similar organizations in South Korea, including Virtual asset committee launched In late 2024 and another public-private Crypto work force introduced In 2022, both started by the Financial Services Commission (FSC).
The democratic party too Set to introduce the Digital Asset Basic Act. The bill will establish a legal framework for cryptocurrencies and stablecoins, which requires those who give to hold at least 50 billion winning reserves and get approved from the FSC.
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