As the term of new President Lee Jae-myung, who pledged to foster virtual assets, begins

As the term of new President Lee Jae-myung, who pledged to foster virtual assets, begins, it is expected that the issuance of won-based stablecoins

The term of new President Lee Jae-myung, who pledged to foster virtual assets, has begun, and it is expected that the issuance of won-based stablecoins will be supported.

Stablecoins are virtual currencies that fix values on specific assets to minimize price volatility and are mainly designed to fix exchange values in U.S. dollars or euros. In contrast to Bitcoin, which is recognized for its price instability, stablecoins aim for stable value maintenance.

The pros and cons of opening up culture in the face of the dominance of dollar stablecoins and accelerating the pace of change have been a matter of opinion.

With the U.S. preemptively working on legislation and revitalizing the market, mega-companies have been born, and orders for speed battles are increasing among investors.

According to the financial sector on the 11th, Min Byung-duk of the Democratic Party of Korea proposed the Framework Act on Digital Assets the previous day. The bill calls for allowing the issuance of won stablecoins and establishing a presidential digital asset committee.

The bill, which was submitted to the National Assembly, is focused on setting the stage for a new era of digital finance in Korea. It introduces provisions for the issuance of stablecoins pegged to the Korean won, in stark contrast to the existing legal framework, which prohibits the issuance of units of account other than the Korean won by entities other than the Bank of Korea.

The bill also proposes the creation of a presidential digital asset committee, tasked with coordinating and managing all aspects of Korea’s digital asset strategy at the national level. This committee would be directly responsible for establishing a comprehensive legal and regulatory framework for digital assets, encompassing issuance, trading, custody, and supervision.

"Digital assets are no longer an experimental means of the periphery," Min said. "Major countries such as the U.S., the European Union (EU), and Japan are leading institutionalization by introducing omnidirectional regulations ranging from issuance, distribution, and transaction of digital assets, but Korea still lacks systematic and comprehensive legislation."

The bill proposes that any local corporation with equity capital of 500 million won or more can apply for the issuance of stablecoins in units of the Korean won with the approval of the Financial Services Commission.

The bill further proposes that the presidential digital asset committee be composed of the economic vice prime minister and minister of finance, the minister of science and ICT, the minister of financial services, and the chair of the Financial Services Commission as members.

The presidential committee would be responsible for setting the agenda for fostering the digital asset industry, coordinating policies across relevant ministries, and ensuring the seamless execution of the national strategy for the digital asset era.

Earlier, Yongbum Kim, head of the presidential office's policy office, expressed a similar idea when he was the head of Hashed Open Research, a think tank for Hashed, Korea's largest blockchain investment company.

This is actually read as an expression of the government's willingness to enter a "speed war" of stablecoins, and it is said that non-banking sectors such as fintech and virtual asset startups, not banks, have prepared various measures to issue stablecoins directly.

Recently, the Open Blockchain and DIDIA (OBDIA), a corporation involving KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK companies, and Sh Suhyup Bank, is reportedly seeking to issue stablecoins in units of the Korean won. The association is said to be considering establishing subsidiaries and issuing stablecoins in a way that banks jointly invest.

Some investors point out that it will take a considerable amount of time to draw a detailed roadmap in the banking sector, which is conservative and prioritizes risk control.

In particular, mega-companies have been born in the U.S., which has been preemptively working on legislation and revitalizing the market, and orders for speed battles are increasing among investors.

Among them, Circle, the issuer of USDC, the world's second-largest cryptocurrency stablecoin, soared 168.48% on the day of its listing, followed by a 270% surge over the next three days. The market capitalization also increased to $21.6 billion (29.4 trillion won), surpassing about three times the company's original target value ($6.8 billion).

It is interpreted as a result of the Trump administration easing regulations on virtual currency and the possibility of the U.S. Congress passing a stablecoin-related bill within August this year.

With the global box office success of stablecoins and the election of President Lee, who is pro-virtual asset, public opinion on digital assets is in a positive mood.

According to a survey of 2,259 people by the Korea Chamber of Commerce and Industry