{"id":24869,"date":"2025-06-24T11:41:29","date_gmt":"2025-06-24T08:41:29","guid":{"rendered":"https:\/\/forklog.com\/en\/south-korea-proposes-replacing-dollar-with-stablecoins\/"},"modified":"2025-06-24T11:41:29","modified_gmt":"2025-06-24T08:41:29","slug":"south-korea-proposes-replacing-dollar-with-stablecoins","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/south-korea-proposes-replacing-dollar-with-stablecoins\/","title":{"rendered":"South Korea Proposes Replacing Dollar with Stablecoins"},"content":{"rendered":"

South Korea’s new administration plans to permit the issuance of stablecoins pegged to the national currency. This move aims to bolster the country’s independence from foreign assets, reports The Block<\/a>.<\/p>\n

Min Byung-duk, a lawmaker responsible for digital assets in President Lee Jae-myung’s campaign team, has already proposed<\/a> a bill for licensing stablecoin issuers. According to him, this will reduce reliance on the US dollar.<\/p>\n

Byung-duk emphasized that the use of stablecoins based on the American currency is directly linked to capital outflow. In his view, the initiative will bring economic benefits: reducing trade costs, diversifying currency risks, and increasing global investments in the local economy.<\/p>\n

The goal is to create an environment where private companies can issue stablecoins, and various market participants, including content creators, game developers, and e-commerce platforms, will actively use them.<\/p>\n

Criticism<\/h2>\n

Some industry experts have questioned the effectiveness of the initiative.<\/p>\n

\n

\u201cWon-based stablecoins will not solve the problem of capital outflow\u2014they may even accelerate it. Unlike the dollar, the Korean currency is not globally recognized. Issuing such a stablecoin will not create international demand for it,\u201d said SmashFi co-founder and CEO Brian Hung-jong Paik.<\/em><\/p>\n<\/blockquote>\n

He added that the initiative could have unpleasant consequences, exposing the country’s monetary system to speculative use in global crypto markets. The expert also sees a risk that stablecoins could become a \u201cproxy-CBDC\u201d and open the door to financial censorship.<\/p>\n

Instead of promoting won-based stablecoins, Paik suggested South Korea follow El Salvador’s path by creating a national reserve in the first cryptocurrency.<\/p>\n

\n

\u201cBitcoin is the only truly neutral, censorship-resistant, and globally liquid digital asset,\u201d he noted.<\/em><\/p>\n<\/blockquote>\n

Authorities’ Position<\/h2>\n

Byung-duk acknowledged that the won is not among the world’s major currencies but claims there is \u201creal demand\u201d for stablecoins pegged to it. He links this to the global expansion of Korean content, games, and e-commerce services.<\/p>\n

The lawmaker drew a clear line between private \u201cstablecoins\u201d and CBDCs. According to him, token issuance will be carried out exclusively by the private sector and determined by market demand. However, basic requirements for reserve disclosure and issuer registration are \u201cinevitable\u201d to comply with international AML\/CFT<\/span> standards.<\/p>\n

In April, the central bank announced<\/a> its intention to \u201cactively participate\u201d in creating legislation regulating stablecoins.<\/p>\n","protected":false},"excerpt":{"rendered":"

South Korea’s new administration plans to permit the issuance of stablecoins pegged to the national currency. This move aims to bolster the country’s independence from foreign assets, reports The Block. Min Byung-duk, a lawmaker responsible for digital assets in President Lee Jae-myung’s campaign team, has already proposed a bill for licensing stablecoin issuers. According to […]<\/p>\n","protected":false},"author":1,"featured_media":24868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[974,807],"class_list":["post-24869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-south-korea","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"43","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/24869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=24869"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/24869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/24868"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=24869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=24869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=24869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}