Korean won-based stablecoin proposal

Key Points:

• Lee Jae-myung suggests a won-based stablecoin ahead of elections.
• Aimed at retaining domestic wealth amidst foreign stablecoin outflows.
• Regulatory hurdles exist; potential first for government-backed digital currency.

Lee Jae-myung, South Korea’s Democratic Party leader, proposed a stablecoin linked to the Korean won ahead of the June 3, 2025, presidential election.

The proposal aims to curb asset outflows and enhance financial sovereignty, potentially making South Korea a leader in government-backed digital currencies.

Lee Jae-myung’s Proposal to Counter Foreign Stablecoin Reliance

Lee Jae-myung recently proposed a Korean won-based stablecoin to counter foreign stablecoin reliance and reduce capital outflows. According to Lee, “We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.” This suggestion is tied to his broader strategy to strengthen national financial systems, addressing capital outflows observed between January and March 2025.

This initiative could potentially alter regulatory landscapes by introducing a government-backed stablecoin, marking a significant shift in managing digital assets in South Korea. The proposal aims to stabilize asset flows and leverage local currency, impacting crypto investment approaches.

The political landscape is reacting actively, with Lee’s rival Kim Moon-soo leaning towards crypto innovation. Concerns also emerge, exemplified by Shin Bo-sung’s statement that stablecoins might inflate money supply and shift monetary control toward private entities.

South Korea’s Move Towards a Government-Backed Digital Currency

Did you know? South Korea’s potential pioneering effort in launching a government-backed digital currency could reshape global approaches to state-integrated financial solutions.

Tether USDt, currently priced at $1.00, holds a market cap of $151.64 billion, constituting a 4.50% dominance in the market. According to CoinMarketCap, the 24-hour trading volume has decreased by 15.40% to $79.72 billion. The price has shown minimal fluctuation over various timeframes, maintaining a stable presence.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 03:21 UTC on May 21, 2025. Source: CoinMarketCap Insights from the Coincu research team emphasize regulatory and financial challenges tied to launching a stablecoin. Historical trends suggest potential hurdles in achieving widespread acceptance, while Lee’s proposal might trigger global interest in government-backed digital currencies. Technology alignment will be key to its success.