Rep. Min Byeong-deok: “Won stablecoins must win as a ‘go-to coin’ amid the dollar stablecoin offensive”

“The success of won stablecoins is not merely about introducing a payment instrument; it is an issue directly tied to national competitiveness. We must move away from a high-entry-barrier regulatory approach and shift the legislative paradigm toward ensuring safety while fostering innovation.”

Rep. Min Byeong-deok of the Democratic Party of Korea (pictured) said this at the conference titled “Won Stablecoins as a Platform: Distribution, Utilization and Demand for Digital Payment Tokens,” held on the 13th at Hashed Lounge in Gangnam, Seoul. He stressed that speed and a differentiation strategy are needed for won stablecoins (Wonsco) to secure competitiveness in the global digital economy.

Min laid out a strategy under which won stablecoins should become a “go-to coin” used in everyday life by the world’s 8 billion people. “Because we are not an issuer of a reserve currency, it is difficult to respond to the offensive by dollar-based stablecoins in the same way,” he said, adding that “creating a go-to coin that people around the world choose voluntarily is a realistic winning strategy.”

He continued, “In particular, we can design won stablecoins with various distinctive features by combining them with cultural and content assets that have strong fandoms, such as K-pop (K-POP) and webtoons,” and added that “we should consider ways to expand into global markets through models that secure specific purposes and user bases.” He also made clear that a scenario in which an opportunity is missed and all payment means become dependent on dollar-based stablecoins is one to be guarded against.

On how to ensure safety, he pointed out that rigorous oversight of reserve assets is more critical than a bank-centered issuance structure. “The safety of a stablecoin depends on management and supervision of whether 100% of the reserve assets are being properly safeguarded,” Min said. “By shortening inspection cycles and establishing an always-on monitoring framework through conduct regulation, we can secure sufficient stability,” he explained.

He suggested that “entry regulations that restrict issuers to specific industries can stifle innovation,” proposing that “issuance should be broadly permitted, while reserve assets and operational conduct should be managed strictly.” He also stressed that “rather than blocking technologies with overwhelming utility through regulation, the role of policy is to build guardrails so they can be used safely,” adding that “we should respond proactively to change instead of delaying on the grounds of risk.”

Min projected that “if we cut FX conversion fees and build a frictionless payment ecosystem through the introduction of won stablecoins, we can expect substantial improvements in distribution and transaction efficiency.” He added, “If we cut FX conversion fees and build a frictionless payment ecosystem through the introduction of won stablecoins, we could generate annual distribution effects of more than 5 trillion won to 10 trillion won, so now is the time to choose innovation—not suppression—and move toward the center of the global digital economy.”