Lee Jae-moon, a presidential candidate in South Korea, has proposed the creation of a stablecoin pegged to the South Korean won. He believes this will help preserve national wealth and reduce costs associated with crypto transactions.
This is reported by Finway
In his statement published by The Korea Herald, Jae-moon noted that it is necessary to establish a market for stablecoins to prevent the outflow of wealth from the country. He believes that such an internal stablecoin could stabilize the financial system, reduce dependence on foreign currencies, and maintain economic value within the country.
Potential Risks and Legislative Initiatives
Shin Bo-sung, a senior researcher at the Korea Capital Market Institute, expressed concerns that the issuance of stablecoins could lead to excessive growth of the money supply and negative consequences. He emphasized that this would effectively mean transferring the right to create money to private companies.
According to Jae-moon, the Democratic Party of South Korea plans to introduce a bill this week that will facilitate the integration of digital assets into national legislation. This document aims to define the legal status as well as the rules regarding the issuance, circulation, and listing of digital assets.
Investment Opportunities for Pension Funds
The presidential candidate also proposed creating an integrated monitoring system to reduce transaction costs, ensuring regulated access for investors to the cryptocurrency market. His team believes that including digital assets in investment portfolios is an important means of protection against volatility compared to traditional investments.
Jae-moon also suggests allowing institutional investors, including the National Pension Fund, to directly invest in digital assets once their value reaches the necessary level of stability.
“To preserve national wealth.”
It is worth noting that Jae-moon has previously expressed his intention to support the creation of exchange-traded funds (ETFs) based on crypto assets.