South Korean Presidential Candidate Makes Case for Korean Won Stablecoin

As South Korea’s Presidential election approaches, candidates are introducing new ideas to support the country’s digital economy. Lee Jae-myung, the Democratic Party’s presidential candidate, has recently shared plans to support the development of a stablecoin linked directly to the Korean won. This new digital currency is meant to prevent money from leaving South Korea and reduce the country’s reliance on foreign money like the U.S. dollar. Lee thinks it will strengthen South Korea’s economy and help protect national wealth. A Presidential Push for a Won-Based Stablecoin Lee Myung pushed for a stablecoin pegged to the Korean won. Many people in the country use stablecoins like USDT and USDC, which are backed by the U.S. dollar. This leads to Korean won being converted into U.S. dollars, resulting in significant outflows from domestic funds. Lee wants to change this by creating a Korean stablecoin to help keep national wealth within the country’s borders. During the first quarter of this year, South Korean crypto exchanges recorded outflows totaling $40.8 billion, equivalent to 56.8 trillion won. Half of this amount was due to the use of U.S. dollar-based stablecoins. Currently, South Korean regulations do not permit the issuance of won-backed stablecoins. This ban has made it hard to keep enough money flowing in South Korea’s financial system. Plans To Make Crypto Investment Safe and Legal in South Korea Besides the stablecoin idea, Lee also supports the introduction of crypto exchange-traded funds (ETFs) to South Korea. He asserted that this would allow people to invest in digital coins like Bitcoin (BTC) through typical financial markets. He also wants to create clear and firm rules for crypto. This would protect investors and allow big groups, like the National Pension Fund, to invest in digital assets safely. Meanwhile, Lee is not the only one who supports the growth of crypto in South Korea. Kim Moon-soo, a candidate from the People Power Party (PPP), has also expressed his intention to help expand the crypto sector if elected. During a public meeting, Kim Moon-soo pledged to legalize spot ETFs , lower transaction fees, and introduce robust consumer protections. These proposals align with the broader policy direction of the People Power Party , which was announced in April. South Korea Softens Tough Stance On Crypto Rules South Korea was once known for its strict stance on cryptocurrency. In 2017, several digital asset activities were banned in the country. However, the government has recently started to ease these restrictions, allowing businesses to re-enter the crypto space. The Financial Services Commission (FSC) of South Korea plans to issue new guidelines for crypto investment in the third quarter of this year. This move signals the country’s intention to end the ban on institutional investment in digital assets. The post South Korean Presidential Candidate Makes Case for Korean Won Stablecoin appeared first on TheCoinrise.com .

Source: The Coin Rise