A prominent South Korean legislator has called on the government to accelerate stablecoin regulation, warning that delays could undermine the nation's monetary independence. Rep. Min Byoung-dug from the Democratic Party of Korea stressed the urgency of establishing a legal framework during the eighth Global Business Forum in Seoul. Min emphasized that stablecoins represent a critical element in maintaining control over domestic payment systems. The lawmaker warned that without swift action, Korea risks losing influence over its own financial infrastructure as dollar-denominated digital currencies gain traction globally. The Political Affairs Committee member argued that stablecoins have moved beyond theoretical debate. He stated that the focus must shift from questioning their necessity to implementing them effectively. Min characterized these digital assets as essential instruments for international payments, trade settlements, and remittance services. Dollar-Based Stablecoins Threaten Won's Dominance Min highlighted growing concerns about dollar-pegged stablecoins becoming standard tools in global commerce. He cautioned that failing to develop a won-backed alternative could result in significant erosion of Korea's monetary sovereignty. Dollar-linked stablecoins function as a new category of currency that nations must address strategically. The lawmaker noted several advantages these digital currencies offer. They enable faster transaction speeds compared to traditional banking systems. They also reduce costs associated with cross-border payments. These benefits make them increasingly attractive to businesses engaged in international trade. Min pointed to emerging market pressures forcing Korean companies to adapt. Many firms face demands to accept dollar-based stablecoins during overseas transactions. This trend continues regardless of domestic policy positions. Evidence suggests this shift has already begun affecting local businesses. Korean Businesses Already Using Foreign Stablecoins Small and medium-sized enterprises in Korea have started compensating foreign employees with dollar-denominated stablecoins. Workers increasingly request payment in these digital currencies. Several companies are exploring stablecoin options for international settlement purposes. Min warned these practices will become standard before proper regulatory frameworks emerge. Foreign stablecoin systems risk becoming deeply embedded in daily transactions. This creates challenges for authorities attempting to maintain oversight and control.
