The main legal and financial experts have warned the political leaders that Stablecoin adoption plans have a danger to the South Korean economy.
According to the Chungnyun Ilbo newspaper, experts say that stablecoins based on the US dollar may have an impact on exchange rates and fiduciary currencies.
Danger for Stablescoin for the South Korean economy?
The comments came during a meeting on the theme of digital assets of the Korea Economic Association at the FKI Tower Conference Center in Yeouido, Seoul, on May 19.
A panel of experts expressed his concerns about the possible proliferation of dollar staboins in South Korea.
The panel argued that the use of stables would reduce the volume of won payments made by individuals and companies in South Korea.
He also said that the Korean Central Bank (BOK) could suffer accordingly. The BOK, said experts, could lose the ability to manage money supplies or intervene in the exchange markets.
The BOK has made similar declarations in recent days, in response to the promises of manifests linked to the stablecoin of the first presidential candidate Lee Jae-Myung.
KRW Stablecoin on the political agenda
Lee Jae-Myung is committed to launching a Krw-Pegged Stablecoin if he was elected president on June 3. The members of his party, the Democratic Party, also argued that financial regulators – and not the BOK – should have the last word on the stable program.
But others want to use existing staboins in their adoption discs. They claim that not adopting is to hinder Seoul’s technological competitiveness.
These defenders promote the authorization of South Korean businesses and payment companies to work with large capitalization stalls such as the USDT and the USDC.
However, Lee Seung-Seok, principal researcher at the Korea Economic Research Institute, warned:
“If floors based on a dollar are established as a means of payment in South Korea, this could lead to structural changes in the Won / Dollar exchange rate determination mechanism.
The researcher added that the stables -cores based on a dollar allow rapid mobility of capital. He added that their decentralized nature “could cause large -scale capital outings in the event of a crisis”.
Kim Hyo-Bong, a former financial supervision services manager, said Washington and Brussels were both likely to launch stable legislation in 2025. Kim said:
“South Korea should also ensure that it acts in accordance with global trends.”
Kang Tae-Soo, guest professor at the Kaist Graduate School of Finance and member of the Bok Monetary Policy Committee, said that the stablecoins offer business benefits in payment and regulation spaces.
But Kang concluded that stablecoins were difficult to control. He said they could sow uncertainty in the monetary and exchange policy sectors.
The academic argued that the BOK and the government should guarantee that adoption leads to “minimize side effects and maximize the advantages”.
However, others warned the dangers of overbuilding. Namgung Joo-Hyun, an associate professor of commercial law at Sungkyunkwan University, said that the “global paradigm of digital assets was changing rapidly”. He said:
“We must take measures to ensure that South Korea does not end up isolated due to excessive regulations. We must establish a financial framework which offers both international coherence and industrial competitiveness. ”
A War of Word
Meanwhile, the war war of the presidential candidates continues. During the first televised debate between the four main candidates for the June 3 survey, Lee Jae-Myung reiterated his commitment to launch a coin at the KRW.
But Etoday reported that Lee Jun-Seok, from the rival reform party, challenged the favorite in the matter.
Lee Jae-Myung refuted Lee Jun-Seok’s challenge, saying that “Fiat-based Stablecoins have won in warranty are stable”.
However, Lee Jun-Seok said that there was “no use case” for a kind of stablecoins that use an ankle other than the USD.
He continued, explaining that the USDC and the USDT, combined, “represent 90% of the StableCoin market”. Lee Jun-Seok asked the forerunner what measures he would take “to prevent illegal traffic from Stablecoin funds, such as sending funds to North Korea”.
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