South Korean Lawmaker Champions KRW Stablecoin to Propel Digital Finance Leadership

Advancing South Korea’s Digital Finance Position through a KRW Stablecoin

Min Byeong-deok, a Democratic Party representative in South Korea’s National Assembly, has proposed the development of a Korean won (KRW)-denominated stablecoin as a cornerstone for South Korea’s ascent to the forefront of global digital finance. During a speech at "Block Festa 2025" in Gangnam, Seoul, on October 26, Min emphasized that such a stablecoin could go beyond being merely a financial product, transforming into essential financial infrastructure critical for South Korea’s path to becoming a digital superpower.

“The KRW stablecoin is more than just technology; it’s a tool to enhance citizens' lives and fortify monetary sovereignty,” stated Min. He asserted that this initiative positions South Korea to become a “Digital G2” leader, enhancing its influence in the rapidly evolving digital economy.

Min also highlighted the urgency of tailoring regulatory policies to foster innovation rather than hinder progress through excessive compliance. By aligning legislative efforts with technological advancements, South Korea could secure an advantage over competitors in the race for digital currency leadership.

South Korea’s Thriving Digital Asset Ecosystem

The foundation for South Korea’s digital finance prominence is already well-established. Currently, over 6 million South Koreans actively participate in the digital asset market, reflecting a high adoption rate supported by robust technological infrastructure. According to Min, this existing ecosystem positions the nation uniquely in the global arena.

South Korea’s reputation as a cultural and industrial powerhouse—underscored by its global influence in K-culture, medical technology, and manufacturing—further amplifies its potential to dominate international digital markets. “Our prominence in digital assets is unparalleled, with 30% of the population holding cryptocurrencies,” Min explained. Additionally, South Korea ranks second globally in daily cryptocurrency trading volume, and two of the top 10 global cryptocurrency exchanges operate within its borders.

This growing ecosystem provides a fertile foundation for the introduction of a KRW-denominated stablecoin, which Min believes could elevate South Korea to a leadership position in the evolving global financial system.

Navigating Geopolitical Implications with a KRW Stablecoin

Min also stressed the geopolitical significance of launching a KRW stablecoin, especially in light of the growing international dominance of U.S. dollar-backed stablecoins. The consolidation of dollar-based payment systems, he warned, could render South Korea excessively dependent on American financial networks for trade and economic transactions.

“If the U.S. expands its dominance in global payment systems through dollar-backed stablecoins, South Korea’s entire financial ecosystem risks becoming intertwined with and reliant on the dollar. This could undermine our monetary independence,” Min remarked.

The lawmaker’s call to action is clear: South Korea must institutionalize the KRW stablecoin quickly to avoid falling behind. Legislative stagnation, he cautioned, would not only limit South Korea’s options but also jeopardize its ability to compete in digital currency innovation.

Min further argued that the regulated adoption of KRW stablecoins could ensure South Korea’s financial stability while also fortifying its position as a key player in the global digital economy. “Institutional frameworks are not auxiliary but absolutely essential to the thriving of our national economy,” he indicated.

Accelerating Regulatory Frameworks Through Task Forces

As part of efforts to advance legislative processes, the Democratic Party has formed a specialized Digital Asset Task Force. Min stated that the group is already collaborating with government bodies, industry leaders, and other stakeholders to expedite legislation.

“We’ve received feedback from several government agencies and will be engaging with industry representatives this week,” Min revealed. “Our party’s commitment to accelerating the institutionalization of digital finance regulations is unwavering. Through collective efforts, we aim to implement a comprehensive legal framework for digital assets.”

Min made specific reference to the Digital Asset Basic Act, emphasizing its vital role as the groundwork for South Korea’s envisioned digital finance ecosystem. This act, accompanied by other regulatory initiatives, is seen as pivotal to ensuring the stable and sustainable growth of the nation’s digital asset market.

A Defining Moment for South Korea’s Digital Finance Leadership

Concluding his remarks, Min urged lawmakers and stakeholders to recognize the present as a decisive moment for shaping South Korea’s digital finance future. “This is our opportunity to emerge as a global leader in the digital economy. Building a legal and institutional foundation for digital finance is imperative, not optional,” he stressed.

He reaffirmed the National Assembly’s resolve to push forward policies that could secure South Korea’s standing as a digital finance powerhouse. Key legislative measures—like the proposed KRW stablecoin—are poised to play a transformative role, driving innovation while maintaining monetary sovereignty.

Min’s vision reflects South Korea’s broader strategy to leverage its technological and financial strengths to remain competitive in the global digital landscape. The proposed KRW-denominated stablecoin stands at the heart of this effort, embodying the nation’s ambition to redefine its role in the global financial ecosystem.