- South Korea has initiated discussions on incorporating Bitcoin into its national reserves and developing a stablecoin backed by the Korean won
- Financial experts and opposition lawmakers have emphasized the need for clear policies in response to global shifts towards cryptocurrency reserves
- Concerns have been raised about potential loss of monetary sovereignty if USD-pegged stablecoins dominate without a domestic alternative.
South Korea is actively exploring the integration of Bitcoin into its national reserves and the creation of a won-backed stablecoin. This initiative aims to address the evolving global financial landscape, where cryptocurrencies are increasingly recognized as strategic assets. As reported by The Korea Herald, experts and policymakers are advocating for proactive measures to maintain the nation’s monetary sovereignty and competitiveness in the digital economy.
Strategic Response to Global Trends
The push for these developments has gained momentum following reports of the United States establishing a Bitcoin-centric national reserve. During a recent forum at the National Assembly, Kim Jong-seung, CEO of blockchain firm xCrypton, emphasized the urgency for South Korea to formulate clear policies in response to such global movements, stating, “If the US moves toward holding Bitcoin as part of its reserves, South Korea will need to respond with a clear policy.”
A similar narrative was offered for the potential creation of a national stablecoin, with Kim warning that without a domestic stablecoin alternative, South Korea risks losing “monetary sovereignty” if USD-pegged stablecoins dominate the digital economy. For this reason, a won-backed stablecoin should be issued, Kim said.
Legislative Support for Cryptocurrency Integration
Political figures are also advocating for these initiatives. Rep. Kim Min-seok, leading the Democratic Party’s policy preparation committee, indicated that his party would reshape South Korea’s crypto regulations if it returned to power. Kim emphasized the importance of discussing virtual assets and blockchain finance as integral components of the nation’s economic strategy, again no doubt prompted by the recent formation of a U.S. crypto task force
As global economies increasingly adopt cryptocurrencies, South Korea’s consideration of integrating Bitcoin into its reserves and developing a won-backed stablecoin reflects a strategic effort to maintain financial autonomy and adapt to the rapidly evolving digital financial landscape.
