Lee Eok-won "Stablecoins, putting in place definite safeguards"

Confirmation hearing for Financial Services Commission chair nominee Lee Eok-won

Lee Eok-won, the nominee for Financial Services Commission chair, said that "definite safeguards are being put in place" during the process of institutionalizing stablecoins.

On the 2nd, at a confirmation hearing before the National Assembly's Political Affairs Committee, in response to a question from Kang Jun-hyun of the Democratic Party asking, 'If stablecoin use increases and destabilizes the financial market, is the Financial Services Commission prepared to exercise strong powers such as ordering a suspension of issuance or redemption?', he answered, "we are putting in sufficient, definite safeguards."

Rep. Kang pointed out that while dollar stablecoins are gaining global market dominance, our government should quickly introduce a won-denominated stablecoin to defend monetary sovereignty.

When Rep. Kang asked whether stablecoins should be issued only by banks or whether non-banks should also be allowed to issue them, the nominee said, "Rather than making definitive statements now, we need to see the situation," and added, "We need to carefully consider how far to set authorization requirements for issuers." The nominee added, "We are preparing a draft now, so it is difficult to give a definite answer."

He elaborated, "In addition to institutionalizing won-denominated stablecoins, we must also establish a regulatory framework for dollar stablecoins circulating domestically. We are preparing accordingly."

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com