South Korean presidential candidates and their supporters clashed on the subject of stablecoins while crypto policies continue to dominate the political agenda.
On May 8, the favorite, Lee Jae-Myung, of the Democratic Party, said that South Korea “needed to create a Stablecoin market based on Won”.
Lee Jae-Myung insisted that Seoul should “enter the Stablescoin market quickly” or risk a “exit of national wealth”.
However, his remarks aroused criticism from Lee Jun-Seok, the reform party candidate. The digital daily life of South Korea quoted Lee Jun-Seok saying: saying:
“The point of view of Lee Jae-Myung’s economy is always dangerous and experimental. He launches irresponsible unaccvious ideas. And he repeats words to plausible consonance without understanding anything on the market. ”
South Korean presidential candidates: the War of the Words of Stablecoin
Lee Jun-Seok added that South Korean investors have already had burnt fingers with the StableCoin KST KST of Terra. On his social media pages, the candidate wrote:
“South Korea already has experience with a stable pointe won called KRT. This same piece was at the heart of the terra-Luna incident. ”
The collapse of the terra of May 2022 ecosystem saw the stablecoins of the company lose their ankles. The accident has suffered millions of dollars in the global cryptography markets.
Thousands of South Koreans have been affected. Lee Jun-Seok continued:
“The KRT of Terra has started as a stablecoin fixed 1: 1 for the Korean Won. But he had no active real to save him. Instead, operators tried to maintain its price using the very volatile sister room, Luna (now Lunc). But the results were disastrous. ”
The reform party candidate explained that when market confidence collapsed, Lunc’s value had dropped. He said:
“All terra parts, including KRT, collapsed. This made the stable in stable without sense. ”
Collateral question
Lee Jun-Seok struck Lee Jae-Myung, saying that the latter called for the creation of a Stablecoin KRW “without explaining in which active collateral will be included.”
He said that the candidate of the Democratic Party had not explained how this play would manage the risks of the market to overcome the “causes of past failures”.
Lee Jun-Seok, a former leader of the ruling party of the ruling people (PPP), founded the reform party in January 2024 following its separation from the party.
He resisted the calls of the management of the PPP, which asked him last month to join the party as they head to the elections next month.
But the defenders of Lee Jae-Myung went to social networks to refute the claims of the candidate of the reform party.
The former legislator of the Democratic Party, Kim Byeong-Wook, said that Lee Jun-Seok’s comments were “out of contact” with international regulatory trends.
Kim noted that “almost all international regulators” have already ruled that “chips based on algorithms are too volatile to even be classified as stablecoins”.
He said that regulators from Washington everywhere in Brussels and Tokyo shared this point of view. Kim added:
“Structures like those used by Terra are out of the question.
A War of Word
Kim accused Lee Jun-Seok of “bomber” based on algorithms and guaranteed stabins. The former deputy-DP said that the logic of Lee Jun-Seok was that “Terra had failed, so the stablecoins are dangerous”, adding: adding:
“If he had only been familiar with the basic concepts of global financial regulations, Lee Jun-Seok would have avoided making such a radical generalization.”
Kim argued that Won Pigged tokens could help reduce the costs of payment abroad and revitalize the national digital economy.
The media cited an anonymous official of an exchange of national crypto as a public speech welcoming on stablecoins and other questions related to the crypto. The manager said:
“We see politicians engaging in a range of technical debates concerning virtual assets. These have not been made public so far. We are positive to see an institutional reorganization in the cryptography sector after the elections. ”
South Korea went to the polls on June 3. The PPP candidate, Kim Moon-SOO, signed up at the beginning of the month to allow national pension and sovereign funds to buy tokens like Bitcoin (BTC).
The assignment of candidates for the South Korean presidential election in the Korean South in the Stablecoin bitter line appeared first on Cryptonews.
