"Won-denominated stablecoin should be led by the private sector"

A suggestion has emerged that issuance of a won-denominated stablecoin (Wonsco) and mainnet construction should be led by the private sector rather than the government or the financial sector.

Professor Park Hye-jin of Sogang University AISW Graduate School attended the 'Exploring Stablecoin Governance' seminar held on the 2nd at the Members' Office Building of the National Assembly in Yeouido, Seoul, and said, "Public blockchain and mainnet operational experience are areas that traditional finance does not possess," adding, "the private sector is much more advantageous in terms of speed, openness, and international network connectivity."

Professor Park cited examples of global stablecoin frontrunners Circle and Tether pursuing their own mainnet strategies and explained, "Stablecoins are, beyond a simple payment means, global financial infrastructure."

Specifically, she said, "The process in which Circle and Tether are currently building their own mainnets appears to be a process of establishing their own governance rules in the digital asset market," and "domestically, private-sector experience should be actively utilized to secure global scalability and governance."

Professor Park emphasized that private-led issuance of Wonsco is necessary to secure global scalability. She said, "If domestic banks or the government lead the Wonsco project, it could be issued on a mainnet tailored only to the domestic market," and "If Wonsco is introduced only for domestic use among ourselves, it can never succeed." She added, "It should secure global scalability so that Wonsco can be integrated into the global decentralized finance (DeFi) market, the real-world asset tokenization (RWA) market, and various networks."

Finally, Professor Park stated, "A won-denominated stablecoin is a means to extend monetary sovereignty into the digital realm," and "the government should provide regulation and a safety net, and when the private sector leads market construction, Korea can secure international competitiveness."