A claim has emerged that countries around the world should introduce stablecoins based on their own currency. The argument is that if countries lack their own currency stablecoins and the use of dollar-based stablecoins increases, the dollar's dominance will grow and their monetary sovereignty could be shaken.

Michael Casey, senior adviser at the Digital Currency Initiative at the Massachusetts Institute of Technology (MIT) Media Lab, stated accordingly in a speech titled "Stablecoins, artificial intelligence (AI), and programmable money" at the "Future Tech Forum: Digital Assets" held in Gyeongju on the 30th.

Michael Casey, senior advisor for the Digital Currency Initiative at the Massachusetts Institute of Technology Media Lab, delivers the keynote at the "Future Tech Forum: Digital Assets" held on the 30th at Gyeongju Arts Center Wonhwa Hall. /Courtesy of Dunamu

The Future Tech Forum, an official side event of the Asia-Pacific Economic Cooperation (APEC) Chief Executive Officer (CEO) Summit, was hosted by Dunamu, which operates the virtual asset exchange Upbit.

Adviser Casey said, "The financial system has long been maintained around banks, but now we need a better alternative. The international settlement process has become excessively complex and costly," and added, "Blockchain is a technology that dramatically reduces the cost of trust through mathematical proofs and a transparent system." He went on, "Stablecoins allow capital that was tied up while waiting for settlement to be used immediately, positively affecting economic growth and investment."

Casey argued, "If there are no stablecoins based on a country's own currency, the use of dollar-based stablecoins will increase and the dollar's dominance will strengthen." He noted, "If this happens, countries' monetary sovereignty could be seriously undermined. The current 'Bretton Woods 2.0' system, in which the world is subordinated to the policies of the U.S. Federal Reserve (Fed), could be further reinforced."

To block this trend, Adviser Casey argued that each country should issue stablecoins based on its own currency. He said, "For Korea to consider a won-based stablecoin is the right direction to protect monetary sovereignty while preparing for digital transformation," and added, "If a few platforms monopolize technology, it can become a totalitarian dystopia. Countries should cooperate so that privately led Blockchain systems can be consolidated with one another."

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