The ruling party is taking steps towards legislation for the establishment of a won-based stable coin system. While allowing private corporations to issue coins, the main point is to clarify conditions such as requiring collateral assets to be deposited at 100% or more of the issuance amount. Recently, as the United States passed the 'Genius Act' and other 'Coin Laws' to incorporate dollar stable coins into the legal framework, concerns over 'currency sovereignty erosion' have increased. The ruling party sees it as urgent to respond by establishing a 'won-based digital currency ecosystem.'
According to political circles on the 22nd, Ahn Do-gul, a Democratic Party lawmaker and former vice minister of the Ministry of Economy and Finance, is expected to propose a bill for 'the issuance and operation of digital payment methods (won-based stable coins)' early next week. The basic intention is to stabilize the value of the won.
A stable coin is a cryptocurrency that ensures 'stability' by linking its value to certain assets such as fiat currency or gold to minimize price fluctuations (pegging). In the case of won-based stable coins, the value of the coin is linked to the won at a ratio such as '1 coin = 1,000 won.'
The bill Ahn will propose will not limit the issuance of won stable coins to the Bank of Korea but will open it to non-financial sectors, specifying conditions clearly. The issuing entity must deposit collateral assets at 100% or more of the issuance amount.
Additionally, to prevent unhealthy foreign exchange transactions without compromising foreign exchange transaction integrity, it is expected to include provisions to apply regulations of the Foreign Exchange Transaction Act.
Furthermore, the bill will include provisions to establish a 'Digital Asset Management Committee' within the Financial Services Commission, allowing the committee, the Bank of Korea, and the Ministry of Economy and Finance to confer on the total issuance volume and management criteria in advance. It is also expected to allow the Bank of Korea to monitor transactions and assess systemic risks within the distributed ledger.
This bill is, in effect, a 'government-ruling party proposal' developed through several practical meetings via a task force (TF) alongside major institutions such as the Ministry of Economy and Finance, the Bank of Korea, and the Financial Services Commission since the launch of the Lee Jae-myung administration, according to Ahn's office. The Presidential Committee on Policy Planning is also discussing relevant legislation intensively in the policy planning division where Ahn belongs.
Ahn noted, 'If a won stable coin is used as a payment method, it could affect the money supply, so the Bank of Korea must be able to play a financial stability role. Also, if stable coins are used abroad, they will be foreign exchange, so we must establish a legal basis for the Ministry of Economy and Finance to fulfill its role.'
Previously, Democratic Party lawmaker Min Byeong-deok also proposed the 'Digital Asset Basic Law.' This bill aims to legally permit the issuance of digital assets and to allow non-bank private enterprises to issue stable coins if they meet certain requirements (such as having a capital of 500 million won). Furthermore, it established a Digital Asset Committee under the President to strategically foster the relevant industry at the national level and coordinate policies. While Min's proposal encompasses the overall digital asset, including stable coins, Ahn's proposal is effectively a special law for the establishment of a 'won stable coin.'
Within the party, there seems to be a consensus that the passing of the Coin Laws in the United States has effectively legalized the global circulation of 'digital dollars' issued by large American platforms, raising concerns that currency sovereignty may be undermined in the future.
During a lecture by the Democratic Party's study group on the economy, Min mentioned to reporters, 'There is a current trend of opposition when the Bank of Korea discusses currency conditions. A tsunami is coming to the global payment market. In the future, the United States will pressure us to use dollar stable coins in foreign exchange transactions, and we will not be able to refuse it.' He warned, 'If dollar stable coins come like a tsunami, the use of the won is likely to decrease significantly.'
'The establishment of a won stable coin' is also a campaign promise of President Lee Jae-myung. During the 21st presidential election, the Democratic Party established a Digital Asset Committee under its election countermeasures committee and emphasized that 'we must proactively prepare for the task of activating won stable coins amidst the global financial order transition we face.' The ruling party defines stable coins not merely as virtual assets but as a new 'digital currency infrastructure' connected to the real economy.
The Democratic Party aims to pass the relevant legislation by the end of the year. The party leadership also views this bill as an important legislative task from the perspective of economic security.
After the lecture, lawmaker Min told reporters, 'We can discuss how to achieve more stability in specific areas and how to find a balance between efficiency and stability. That is why I am confident it will happen within this year.' He added, 'During the presidential election, there was a Digital Asset Committee, and I plan to create a Digital Asset Committee within the party to establish a permanent response system. I will consult with the National Assembly.'