"Dollar Stablecoin Growth Spurs Industry Push for ‘Won Adoption’"

2025-07-24 18:30
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"Dollar Stablecoin Growth Spurs Industry Push for ‘Won Adoption’"

출처: Block Media

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Urgent Need for Korean Won Stablecoins Amid Growing Currency Sovereignty Challenges

The rapid proliferation of dollar-backed stablecoins is raising significant concerns about potential risks to monetary sovereignty and transparency in foreign exchange flows. Financial experts are now pressing for the swift deployment of Korean won-based stablecoins as a countermeasure. In response, the South Korean government has pledged to expedite the creation of a regulatory framework tailored to stablecoin integration and digital asset management.

Addressing the urgency of the issue, Hyoung Goo Kang, a professor at Hanyang University, spoke at the "Venture Investment Forum for Fintech and Digital Asset Activation" held on October 24 in the Korea Federation of Banks' international conference room. Kang warned, “For a trade-driven economy like South Korea, the expanding use of dollar-denominated stablecoins fundamentally threatens our foreign exchange supply and demand equilibrium. A delayed response could jeopardize our financial security and compromise monetary sovereignty.”

Kang elaborated on the systemic risks posed by growing domestic adoption of dollar-backed stablecoins. He explained, “While dollar stablecoins may appear to enhance foreign currency inflows on the surface, in reality, they deplete official foreign exchange reserves. This shift also moves currency flows out of government oversight, creating a dangerous opacity.” He cautioned that this lack of transparency erodes trust in the foreign exchange market, increases the likelihood of speculative attacks, and could result in drastic currency fluctuations.

Highlighting broader financial risks, Kang added, “The unchecked growth of dollar stablecoins exacerbates the risk of foreign exchange and credit crises. Absolute prohibition is unrealistic, so South Korea must urgently develop its own Korean won stablecoins to ensure stability within its domestic payment and trading ecosystems.”

Global Stablecoin Use: Lessons for South Korea

The global adoption of stablecoins in nations like Brazil and Argentina offers valuable insights for South Korea. Byung Yoon Seo, CEO of DSRV, highlighted how these countries have embraced stablecoins to address unique financial challenges. “In regions facing high inflation, such as Brazil and Argentina, stablecoins are widely used for peer-to-peer transactions. Similarly, advanced digital payment hubs like Singapore have seamlessly integrated stablecoins into daily financial operations,” Seo said.

Seo advocated for South Korea to modernize its financial infrastructure, shifting from a closed, bank-centric model to a more open and interoperable ecosystem. “For a Korean won stablecoin to succeed, it must operate within an open, standardized framework rather than legacy financial structures that constrain innovation,” he suggested.

Emphasizing the transformative power of stablecoins, Seo declared, “Stablecoins are not just a digital asset. They represent a global, internet-based payment network that is reshaping the international financial ecosystem.” He stressed the need for a national-level strategy, involving both public and private sectors, to foster a robust Korean won stablecoin ecosystem and ensure long-term financial resilience.

Government Steps Up Efforts on Stablecoin Regulation

Amid growing calls from industry stakeholders, the South Korean government is ramping up its stablecoin policy initiatives. At the forum, Kwon Dae Young, vice chairman of the Financial Services Commission (FSC), reaffirmed the government’s commitment. “Once pressing concerns are addressed, we aim to advance crucial strategic industries such as AI semiconductors, digital assets, and stablecoins, positioning them as the cornerstones of our economic future,” Kwon stated.

Kwon further emphasized the multi-faceted benefits of tokenized securities (ST) as potential tools for addressing the financial needs of small and medium enterprises. “To unlock the full potential of digital assets, our policies will prioritize stability, systemic integrity, and robust consumer protection,” he assured. Recognizing the urgency of setting foundational guidelines, Kwon added, “The government is fast-tracking its regulatory framework for stablecoins to both promote their adoption and mitigate potential risks.”

South Korea now finds itself at a critical juncture as it navigates the rapidly evolving global financial landscape driven by stablecoin technology. With a proactive approach from the government and active support from industry leaders, the introduction of a Korean won stablecoin could play a pivotal role in safeguarding the nation’s monetary sovereignty while fostering financial innovation. Such a move would strengthen the nation’s position as a global leader in digital finance and ensure stability in an increasingly digitized economic environment.


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