[Expert Roundtable] Institutionalizing Stablecoins: The Key Is "Balancing Innovation and Stability"

Asia Economy Special Roundtable: "The Path Forward for Korea's Stablecoin Policy"
"Key to System Design Is Protecting Financial Stability Without Stifling Innovation"

As the institutionalization of won-based stablecoins approaches, there is both anticipation that a new payment method could drive financial innovation and concern about potential side effects such as capital outflows and financial instability. Experts agree that how the system balances and is designed between innovation and stability will determine not only the success or failure of the domestic stablecoin market but also the overall stability of the financial market.

At a special roundtable hosted by Asia Economy, participants identified the following as key elements of institutionalization: ▲ qualification requirements for issuers ▲ safety of reserve assets ▲ cooperation systems among authorities.

Ando Geol, a member of the Democratic Party of Korea, stated, "We need to quickly pave the highway that will open up new transaction areas, but we must also install guardrails to prevent accidents," emphasizing, "Reserve assets should be limited to highly liquid assets equivalent to the amount issued, kept separately, and the status of holdings should be disclosed regularly." Lee Byungmok, Director General of the Payment and Settlement Systems Department at the Bank of Korea, said, "There needs to be prior review among relevant authorities regarding aspects that may conflict with existing laws, such as foreign exchange regulations," and suggested that a policy cooperation body among relevant ministries should be established in the related legislation. Kim Youngsik, a professor at Seoul National University, remarked, "Trust in stablecoins comes from the transparency of reserve assets and regulatory principles," and called for a phased approach based on financial stability. On the other hand, Seo Byungyun, head of the Future Finance Research Center at DSRV Labs, argued, "We need to find the optimal approach through rapid experimentation and improvement," warning against being overly constrained by preemptive regulation.

The conclusion of the roundtable was clear: the core is to design a system that can safeguard financial stability without stifling innovation. Assemblyman Ando said, "Stablecoins should play a vital role in the Korean economy by creating added value in new transaction areas," adding, "The system should be designed so that those with fresh ideas and capabilities, not just existing vested interests, can lead the market."