South Korea’s Democratic Party leader Lee Jae-myung proposed creating a stablecoin tied to the Korean won to prevent capital outflows and strengthen national financial sovereignty.
Speaking during a recent policy discussion, Lee argued that a won-based stablecoin would allow South Korea to retain wealth domestically while reducing reliance on foreign-issued digital assets like USDt (USDT) and USDC (USDC), according to The Korea Herald.
Currently, South Korean law prohibits the issuance of domestic stablecoins, forcing local exchanges to rely on US dollar-based alternatives.
Between January and March, crypto exchanges in the country recorded 56.8 trillion won ($40.8 billion) in asset outflows, nearly half of which were linked to foreign stablecoins, the report said.
“We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas,” Lee reportedly said.
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The proposal is part of