Democratic Party's Ahn Dogeol Pushes Legislation for Introduction of KRW-Based Stablecoins

"Stablecoins Require Institutional Frameworks
for Currency and Foreign Exchange Management"

Representative Ahn Dogeol of the Democratic Party of Korea announced plans to propose a bill that would manage stablecoins, which can be used for currency and foreign exchange purposes, separately from other cryptocurrencies, taking into account their unique characteristics.

At a press conference held at the National Assembly Communication Center in Yeouido on June 12, Representative Ahn stated, "In connection with the Digital Asset Basic Act, I will push for the enactment of a law (tentatively named the 'Digital Payment Settlement Instrument Act (KRW-based Stablecoins)') regarding the issuance and operation of digital payment settlement instruments."

Representative Ahn believes that the early introduction of KRW-based stablecoins is necessary for securing digital payment settlement instruments, securing monetary sovereignty, providing an opportunity for the internationalization of the Korean won, establishing next-generation financial infrastructure, and driving innovation in the fintech and financial industries.

According to Representative Ahn, unlike other cryptocurrencies, stablecoins have stable prices and serve as payment and settlement instruments for international trade and investment. Therefore, institutional mechanisms for currency and foreign exchange management are needed.

The proposed bill will include fundamental matters such as eligibility and licensing requirements for stablecoin issuance, requirements for collateral assets, management measures from a currency management perspective, foreign exchange transaction management, and user protection. The bill aims to encompass all necessary provisions for the establishment and development of the stablecoin ecosystem.

Representative Ahn stated, "If this bill is enacted, it will provide institutional support for the transition to a digital economy, secure monetary sovereignty for the Korean won, and significantly enhance the international competitiveness of the domestic digital asset platform industry." He added, "The detailed contents of the bill will be meticulously prepared through a public discussion process involving a task force (TF) composed of industry, academia, research institutes, the Ministry of Economy and Finance, the Bank of Korea, and other relevant organizations."