Political Titans Clash in South Korea Over Game-Changing Stablecoin Legislation
Seoul's corridors of power are rattling as rival factions lock horns over crypto's most contentious innovation.
Stablecoin Showdown: Who Controls the Future of Money?
The battle lines are drawn—progressive regulators want sandbox flexibility while old-guard bankers demand ironclad reserves. Neither side trusts the other with the monetary firehose.
Behind closed doors, lobbyists whisper about trillion-won opportunities while retail investors remain collateral damage in this ideological war. One lawmaker's 'consumer protection' is another's innovation-stifling overreach.
As the won wobbles against dollar-pegged rivals, Seoul faces its Lehman moment: adapt or watch the next financial revolution bypass them completely. (But hey—at least the debate's more substantive than another NFT monkey rollout.)
South Korea introduces legislation for won-backed stablecoin, led by President Lee Jae-myung. Key players Ahn Do-geol and Jin Sung-joon develop framework focusing on financial stability, drawing lessons from Terra-Luna crisis. MOEF and BOK collaborate to ensure regulatory… pic.twitter.com/orJuXDWmfS
— BiNodes (@BInodes_) July 29, 2025
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South Korean Bill Is In Response To Growing Dominance Of USD-Based Stablecoins
Democratic Party of Korea member Ando-geol introduced the ‘Act on the Issuance and Distribution of Value-Stable Digital Assets’. On the same day, People Power Party member Eun-hye Kim introduced the ‘Act on Payment Innovation Using Fixed-Price Digital Assets’.
DP’s initiative is the nation’s first comprehensive legislative blueprint specifically governing Korean won-backed stablecoins. The opposition, PPP, meanwhile filed its own version emphasizing stricter financial discipline and explicitly banning interest payments on stablecoin holdings.
Newly elected South Korean President Lee Jae-myung has openly advocated for stablecoins, and his administration has signalled that stablecoins will fill major gaps in the country’s financial landscape.
In his advocacy for stablecoins, Jae-myung has proposed the eligibility of companies with reserves as low as 500M won ($370,000) to be able to issue stablecoins.
South Korea Pauses CBDC Plans As Stablecoins Gain Ground
Increased market penetration and adoption of stablecoins have put a damper on the South Korean CBDC plans. The country has applied brakes on its CBDC trial program that had been ongoing since April this year in the wake of stablecoin’s resurgence amidst political backing.
The Bank of Korea (BoK) confirmed the current state of affairs in a statement given to Bloomberg on 30 June 2025, through a representative.
Also, a senior representative of one of the seven banks participating in the South Korean CBDC trials informed a local publication that the central bank is holding back until it sees the government’s stablecoin strategy and how CBDCs might integrate with it.
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