Nominee for the head of South Korea's Financial Services Commission, Lee Eok-won, expressed doubts about the value of cryptocurrencies and their role in the financial sector.
Cryptocurrencies with No Intrinsic Value
Lee Eok-won, designated to lead the Financial Services Commission (FSC), stated that cryptocurrencies have no intrinsic value, unlike traditional financial products such as deposits and equities. The nominee noted that the high price volatility of cryptocurrencies makes them unreliable for fulfilling the core functions of money.
Industry Criticism and ETF Debate
The nominee's statements provoked criticism from industry players. Many experts described his stance as regressive, especially against the backdrop of global corporations and governments integrating cryptocurrencies into financial strategies. Lee also addressed discussions surrounding local exchange-traded funds, acknowledging unresolved issues but expressing willingness to collaborate with lawmakers to explore the project.
Support for Stablecoins
Unlike his views on broader cryptocurrencies, Lee expressed a supportive approach to stablecoins, emphasizing the need to balance innovation with necessary safeguards. This initiative, supported by President Lee Jae Myung, reflects a broader regional trend toward exploring stablecoins.
Lee Eok-won's position indicates a cautious approach to cryptocurrencies while opening up the possibility of regulating stablecoins in South Korea, which may influence the future of financial regulation in the country.
