"Won Stablecoin Not Allowed" to Lee Jun-seok... Democratic Party Rebuts "No Sense at All"

The Democratic Party of Korea criticized Lee Jun-seok, the presidential candidate of the Reform Party, who had a skeptical stance on won-based stablecoins.

Democratic Party lawmaker Min Byung-deok stated on Facebook on the 9th, "Banning all won-based stablecoins based on the tragedy of algorithmic Terra (KRT) is no different from suggesting to discard the entire printing technology because one copier broke down." This was aimed at Lee's remarks on won stablecoins. Previously, on the 8th, candidate Lee criticized Democratic Party presidential candidate Lee Jae-myung's remarks on won stablecoins, saying, "Bringing up stablecoins again without reflecting on the Terra and Luna incident is evidence of irresponsibility."

Representative Min emphasized the difference between the stablecoins being reviewed by the Democratic Party and Terra. He said, "The won deposit-type stablecoin being reviewed by the Democratic Party intends to adopt international standards, deposit 1:1 cash-equivalent reserves in banks and trust accounts, mandate accounting audits and real-time balance disclosures, and add statutory interest in case of redemption delays." He added, "It is structurally difficult to find similarities with Terra and Luna," and "We can also consider strengthening separate disclosures and risk guidance for algorithmic types and investment contract securities."

The necessity of introducing won stablecoins was also emphasized. Representative Min stated, "To protect the growth base of the domestic content, game, and DeFi industries with cross-border real-time payments, we must secure our currency sovereignty in the digital space," and "If you say there is no sense of reality, then lawmakers in major countries trying to digitize their national currencies are merely dreamers." He concluded, "The lesson left by algorithmic Terra was not 'ban stablecoins' but 'enforce reserves and disclosures by law,'" and "Candidate Lee Jun-seok seems to have no sense at all about the currency war and financial platform war surrounding stablecoins."