South Korean Democrats advocate for expediting the launch of a Korean Won-pegged stablecoin.
South Korea Accelerates Plans for Won-Backed Stablecoin Amid Global Market Potential
Amid the growing global stablecoin market, lawmakers from South Korea's Democratic Party are advocating for the speedy institutionalization of Korean won-pegged stablecoins. This move comes in response to the U.S.'s recent steps towards establishing a stablecoin bill.
According to local media Edaily, the Democratic Party's Digital Asset Committee Chairman, Min Byeong-deok, views the won-backed stablecoin market as having the potential to surpass sectors like artificial intelligence and semiconductors in the near future. He emphasizes the urgency of this move, stating that it could strengthen the national fiat currency and boost demand for won-backed assets globally.
Min is urging South Korean lawmakers to pass a stablecoin bill, titled "Basic Act on Digital Assets." He has reportedly collaborated with industry experts and the media for a second review process and plans to submit the bill after the third review.
Currently, the South Korean Democratic Party presidential candidate, Lee Jae-myung, is a frontrunner in the presidential elections. Insider reports suggest that Lee is keen on accelerating the rollout of KRW stablecoins to establish them quickly before the U.S. proceeds with its stablecoin bills.
The creation of a won-backed stablecoin could potentially challenge the dominance of U.S. dollar-backed stablecoins, such as USDC and Tether, in the market. Min remarked that these two stablecoins currently account for 90% of the U.S. stablecoin market and are already in use in some areas of South Korea, such as Dongdaemun, where many foreign payments are made.
Meanwhile, the U.S. Senate recently passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025. This Act, known as the GENIUS Act, aims to provide a legal framework for stablecoins, focusing on oversight and consumer protection. However, unlike South Korea, the U.S. does not yet have a comprehensive stablecoin bill akin to South Korea's efforts.
In contrast to the U.S., South Korea's approach appears more centered on national economic interests, creating a centralized legal framework for stablecoins to potentially reduce dependence on U.S. dollar-pegged stablecoins and secure a strong position in the global stablecoin market.
- The push for a won-backed stablecoin in South Korea could spark a crypto business competition, especially in the digital finance sector, as it aims to surpass technological advancements like AI and semiconductors.
- The Korean Democratic Party's Digital Asset Committee Chairman, Min Byeong-deok, believes that won-backed stablecoins could challenge the dominance of U.S. dollar-backed stablecoins such as USDC and Tether, which currently account for 90% of the U.S. stablecoin market.
- South Korea's Democratic Party presidential candidate, Lee Jae-myung, is reportedly eager to accelerate the rollout of KRW stablecoins to establish them quickly before the U.S. proceeds with its stablecoin bills, indicating a possible politics-technology intersection.
- The GENIUS Act, passed by the U.S. Senate, aims to provide a legal framework for stablecoins, focusing on oversight and consumer protection. However, unlike South Korea, the U.S. lacks a comprehensive stablecoin bill similar to South Korea's efforts, highlighting differences in approach towards the stablecoin market.
- The creation of a won-backed stablecoin could have general-news implications, as it represents South Korea's strategy to reduce dependence on U.S. dollar-pegged stablecoins and secure a strong position in the global stablecoin market, a significant move in the world of finance and technology.
