'Opportunities and strategies for Korean finance' policy seminar held Thursday
Legislation delay draws industry complaints as government draft nears release
The National Assembly's Political Affairs Committee said the government's draft Digital Asset Basic Act will be released soon, signaling a push for swift legislation. Lawmakers also called for urgent institutionalization of a won-denominated stablecoin to protect monetary sovereignty as dollar-based stablecoins grow in influence.
Yoo Dong-su, chairman of the committee, said Thursday at a policy seminar titled "Opportunities and Strategies for Korean Finance," held at the National Assembly Members' Office Building in Yeouido, Seoul, that the prolonged delay in enacting the Digital Asset Basic Act has drawn complaints from industry. "We expect the government's draft to come out soon," Yoo said. "As soon as it does, the Democratic Party of Korea intends to pass the Digital Asset Basic Act as quickly as possible."
Yoo said the introduction of a won-denominated stablecoin should be approached as a matter of monetary sovereignty. "The Korean won accounts for roughly 2 percent of all global currencies," Yoo said. "With dollar-based stablecoins exerting powerful influence, we need to think seriously about whether the won can hold its ground in the digital currency market as well."
Yoo added that the spread of dollar stablecoins is further entrenching the United States' economic dominance as the issuer of the world's reserve currency. "We need to move quickly on introducing a won-denominated stablecoin, if only to protect our monetary sovereignty," Yoo said.
Yoo also raised the possibility of a won stablecoin gaining traction abroad. "South Korea already wields considerable influence in the global cultural market through K-culture," Yoo said. "If we combine a won-denominated stablecoin with K-culture, it could become a new opportunity for the won to reach the world."
Democratic Party of Korea lawmaker Ahn Do-geol said the committee chair's pledge to move quickly on the Digital Asset Basic Act carries real weight for those who have already been preparing legislation. "Stablecoins are no longer optional — they are essential," Ahn said.
Ahn acknowledged a gap between the private sector and the government, but said it stems from their different roles. "The private sector is moving ahead while the government appears to be lagging, but I think that reflects their different positions and areas of responsibility," Ahn said. "The government has a supervisory and oversight role, so there is much it needs to carefully consider."
Ahn also said follow-up legislation after the Digital Asset Basic Act is enacted will be critical. "The Digital Asset Basic Act is, as its name suggests, a framework law," Ahn said. "For stablecoins to actually be issued and distributed in practice, the Electronic Financial Transactions Act, the Act on Reporting and Using Specified Financial Transaction Information, and the Foreign Exchange Transactions Act will all need to be amended as well."
kyoung@heraldcorp.com
