Kim Byeong-gi, Floor Leader: "Won-denominated stablecoin ideally centered on a banking consortium"

Won-denominated stablecoin should be 'bank-centered'

'Stability' more important than innovation… Must fit Korean reality

Party TF to pursue legislation by the first half of next year

Will establish a Korean-style won stablecoin system

As the Democratic Party accelerates the institutionalization of a won-denominated stablecoin, Kim Byeong-gi, the Democratic Party floor leader, said, "The issuance method of a won-denominated stablecoin is virtually ideal if centered on a banking consortium."

At a closed-door press briefing held before the "Digital Asset Leadership Forum" at the National Assembly Members' Office Building on the 26th, Kim said, "Stability takes precedence over innovation. We should refer to U.S. policy but need to devise institutional solutions suited to Korea's reality."

He explained, "The origin of virtual assets (cryptocurrencies) was about breaking away from central control, but ultimately, to succeed, some central role is necessary," adding, "The government's basic stance is a consortium centered on the banking sector. Once such a model stabilizes, issuance opportunities can be opened to exchanges and fintech as well."

He also emphasized the particularity of finance. Kim said, "Finance requires a conservatism that aims for second place. The cyber environment is such that only the first can survive, but finance is different," and added, "We need to discuss this with experienced figures such as Lee Chang-yong, Governor of the Bank of Korea, and Kim Yong-beom, Director of Policy at the Presidential Office." He also noted, "Those who argue for the innovativeness of stablecoins are not strongly opposed to the consortium approach."

He pointed out that blindly following the U.S. approach is risky. Referring to the U.S. stablecoin regulation bill, the "GENIUS Act," he said, "We should not follow the U.S. exactly but carefully introduce a system that can build resilience," adding, "The U.S. can withstand side effects, but Korea cannot. We do not have the luxury to experiment."

Regarding the party's Digital Assets Task Force (TF), he said, "An integrated TF across parties would be preferable, but because legislation must be completed by the first half of next year, we proceeded proactively," and "Within the TF, opinions are split between the consortium faction and the fintech/exchange faction. We plan to invite Democratic Party lawmaker Lee Jeong-min of the Political Affairs Committee as chair to lead neutral discussions."

Previously, on the 24th, the Democratic Party launched the Digital Assets Task Force (TF) led by Kim and decided to accelerate the filing of the second-phase virtual asset bill. The TF is overseen by lawmaker Lee Jeong-mun and includes eight members: Kang Jun-hyun, Kim Hyun-jung, Min Byung-duk, Lee Kang-il, Ahn Do-geol, Park Min-gyu, and Han Min-su.

Kim emphasized the rapid institutionalization of a won-denominated stablecoin. He said, "According to the Bank of Korea, stablecoin transactions amounting to 56.9 trillion won took place, and most were dollar-based stablecoins," noting, "If Tether (USDT)'s offline use increases and the share of won settlements shrinks, it could lead to a decline in the won's competitiveness." He added, "The introduction of a won-denominated stablecoin is a pledge of the Lee Jae-myung administration, so through swift discussions we must devise a uniquely Korean institutional solution."

He continued, "Virtual assets are uncharted territory, but Korea must approach them strategically and proactively to avoid falling behind the times," and said, "To this end, the National Assembly, government, industry, and academia must pool wisdom together. We will protect investors and prepare for a new leap through balanced policies."

Hwang Doo-hyun, Bloomingbit reporter cow5361@bloomingbit.io

Kang Min-seung, Bloomingbit reporter minriver@bloomingbit.io