In South Korea, it was proposed to replace the dollar with stablecoins

A digital currency based on the won is expected to address the issue of capital outflows from the Republic of Korea.

The South Korean government plans to allow the issuance of stablecoins pegged to the national currency. According to authorities, this step aims to strengthen the country's independence from foreign assets, particularly the US dollar.

A bill on licensing issuers of "stablecoins" has already been proposed in the National Assembly. According to the bill's authors, the use of stablecoins based on the US dollar is directly related to capital outflows.

However, using the national currency (the won) as the foundation will bring certain economic benefits: reducing trading costs, diversifying currency risks, and increasing global investments in the local economy.

The goal of these innovations is to create an environment where private companies can issue stablecoins, and various market participants, including content creators, game developers, and e-commerce platforms, will actively use them.

Proponents of these initiatives believe that although the South Korean won is not one of the major global currencies, there is real demand for stablecoins pegged to it. They associate this with the global expansion of Korean content, games, and e-commerce services.

The lawmakers who proposed the bill have clearly distinguished between private "stablecoins" and CBDCs. In other words, the issuance of tokens will be carried out exclusively by the private sector and will be determined by market demand. However, basic requirements for reserve disclosure and issuer registration are mandatory to comply with international AML/CFT standards.

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