Ahn Do-geol "Korean won stablecoin, the core of financial innovation... rapid institutionalization needed"

Ahn Do-geol, a lawmaker of the Democratic Party of Korea, identified the Korean won stablecoin (Wonsco) as a core driver of Korea's financial innovation and emphasized the need to accelerate discussions on institutionalization.

Ahn said at the 'Korean won stablecoin, Opening the Future of Financial Innovation' forum held on the 8th at the Korea Financial Investment Association in Yeouido, "A digital economic transformation is taking place, and stablecoins are the key engine driving it. Ultimately, they will inevitably spread based on overwhelming payment and remittance efficiency," he said.

He said, "In some countries where the national currency is unstable, stablecoins are effectively serving as the national currency," and added, "Stablecoins are creating a reserve-currency presence. We too cannot avoid this trend." He continued, "Competitors such as Japan, the European Union (EU), Taiwan, and Thailand have already completed legislation, and Japan has begun issuing yen-based stablecoins," adding, "We also need a swift response."

Ahn also mentioned the tangible effects stablecoins could bring to Korean finance. He said, "Korea's annual remittance market reaches 1400 trillion won," and "if Samsung Electronics, Hyundai Motor, and others use Wonsco for payments within global supply chains, they could save trillions of won just in exchange fees."

However, he also noted risk concerns. He pointed out, "Concerns are being raised such as difficulties in monetary control, illegal fund transactions, and 'coin run' incidents," but diagnosed that "if operations are based on smart contracts and reasonable rules and regulations and an international cooperation system are in place, these are sufficiently manageable issues."

Finally, Ahn said, "I am confident in the potential of the Korean won stablecoin," and emphasized, "I have already proposed four bills related to digital assets, and the party has launched a Digital Asset Committee. Through this discussion, the broad framework for institutional design will be established, and the institutionalization of stablecoins will begin in earnest."