Lee Jae-myung Backs Won Stablecoin to Cut Fees, Limit Foreign Crypto Dependence

Lee Jae-myung, head of the Democratic Party, stated that a local stablecoin would allow people to move money on blockchain networks without relying on foreign options like USDT USDT $1.00 or USDC USDC $1.00 .

Currently, South Korean law does not allow anyone to issue stablecoins linked to the won. As a result, local crypto exchanges must depend on US dollar-based stablecoins instead.

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According to a May 20 report by The Korea Herald, between January and March, crypto platforms in the country saw roughly 56.8 trillion won (about $40.8 billion) flow out. Lee stated:

We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas.

Lee’s campaign also suggests giving major institutions, like the National Pension Fund, access to crypto investments only after clear price stability rules are in place. He recommends creating a system that monitors crypto activity across platforms and lowers trading fees to improve access under government oversight.

However, Shin Bo-sung, a senior researcher at the Korea Capital Market Institute, cautioned that such coins could increase the overall money supply and shift financial control away from public institutions. She explained:

Stablecoins are essentially another form of banking, creating money out of nothing.

Meanwhile, on May 7, Arizona Governor Katie Hobbs signed House Bill 2749 into law. What does the bill cover? Read the full story.