The South Korean government, led by President Lee Jae-myung, has unveiled plans to introduce won-backed stablecoins as part of a pro-crypto agenda.
Stablecoin Initiative
The South Korean government intends to introduce stablecoins backed by the won. President Lee Jae-myung advocates for the development of domestic digital currencies to enhance economic stability. "We need to establish a won-backed stablecoin market to prevent national wealth from leaking overseas," said President Lee.
Kakao Pay Share Surge
Following the announcement, shares of Kakao Pay surged by 141%, reflecting optimism in new investment opportunities and potential economic impact.
Reversal of Previous Crypto Ban
This initiative mirrors previous moves by the EU and Japan in stablecoin regulation. South Korea's earlier bans were based on financial risks, which are now overturned by the current pro-crypto administration. Experts suggest that the emerging regulatory environment could enhance investor confidence and South Korea's role in the digital currency market.
The plans to launch won-backed stablecoins could significantly alter the cryptocurrency market, improving the domestic economic situation and enhancing South Korea's global financial status.
