Lee Jae-moon, a presidential candidate in South Korea and leader of the Democratic Party, has initiated a proposal to create a stablecoin that will be pegged to the South Korean won. According to the politician, this is necessary to preserve national wealth.
This is reported by Business • Media
He noted that such a stablecoin would help stabilize the financial system, reduce dependence on foreign currencies, and maintain economic value within the country. Jae-moon believes that the creation of a stablecoin market will prevent capital flight outside South Korea.
“This will prevent the outflow of national wealth beyond the country’s borders.”
Shin Bo-sung, a senior researcher at the Korean Capital Market Institute, expressed concerns that allowing the issuance of stablecoins could lead to excessive growth of the money supply, which in turn could have unpredictable consequences. He emphasized that this would effectively mean transferring the right to create money to private companies.
In turn, the Democratic Party of South Korea plans to introduce a bill on digital assets aimed at establishing a legal framework for the integration of digital assets into national legislation. The document will contain provisions regarding the legal status, issuance, circulation, and listing of digital assets.
Additionally, Lee Jae-moon proposes creating an integrated monitoring system that would reduce transaction costs, providing investors with regulated and convenient access to the cryptocurrency market. His team believes that including digital assets in diversified portfolios could serve as an effective hedge against volatility, unlike traditional investments such as stocks and bonds.
The politician also suggests allowing institutional investors, including the National Pension Fund, to invest in digital assets once they reach the necessary level of stability. It is worth noting that Jae-moon had previously expressed his intention to support exchange-traded funds (ETFs) based on crypto assets.