Summary
- The Democratic Party of Korea reported that it is accelerating discussions on policies related to Korean won stablecoins.
- Min Byung-deok stated that he has proposed the 'three digital asset laws,' including the Digital Asset Basic Act, Token Securities (STO) Act, and Virtual Asset Spot Exchange-Traded Fund (ETF) Act.
- While the United States has incorporated stablecoins into its regulatory framework, Min noted that the STO Act will be handled first at the standing committee next month.
"We must respond to the dollar coin tsunami"
The Democratic Party of Korea is accelerating discussions on stablecoin policies. Amid the situation where the United States has incorporated stablecoins into the regulatory framework to maintain the dominance of the dollar, there is a growing consensus in Korea that the country cannot remain idle.
On the 22nd, Min Byung-deok, a member of the National Assembly's Political Affairs Committee from the Democratic Party, presented at the seminar "Korean Won Stablecoin and Global Digital Finance G2 Strategy" hosted by the internal economic policy research group 'Economy is Democratic Party.' He emphasized, "If a tsunami of dollar stablecoins hits, the won will hardly be used anymore," and stressed, "We should enable transactions for globally influential content and platforms such as BTS and Galaxy Smartphone using Korean won stablecoins to protect at least part of the payments market."
Min has proposed the 'three digital asset laws,' including the Digital Asset Basic Act related to stablecoin issuance, the Token Securities (STO) Act for growing the cryptocurrency ecosystem, and the Virtual Asset Spot Exchange-Traded Fund (ETF) Act. He said, "The STO Act will be handled first at the (standing committee) next month," and added, "Kim Yong-beom, the Chief Policy Officer of the Presidential Office, who is from the blockchain industry, is also nearly in full agreement with these bills."
A stablecoin is a cryptocurrency designed to have a 1:1 exchange value with real money or bonds. On the 18th, the United States brought stablecoins into the regulatory framework through the Genius Act. The idea is to use stablecoins as a new source of demand for already saturated US Treasury bonds and as a tool to increase dollar usage. With fast payment speeds and almost no fees, the applications for stablecoins are expected to continue to grow.
Reporter: Lee Si-eun see@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
