The new administration of South Korea intends to allow the release of stablecoins tied to the national currency. This step is aimed at strengthening the country’s independence from foreign assets, writes The Block.
Deputy of the Ministry of Economics Ben Dock, who was responsible for digital assets at the presidential headquarters Lee Zhe Mena, has already proposed a bill on licensing issuers of “stable coins”. According to him, this will reduce dependence on the US dollar.
Ben Dock emphasized that the use of stablecoins based on the American currency is directly related to the outflow of capital. In his opinion, the initiative will bring economic benefits: reducing trade costs, diversification of currency risks and the growth of global investments in the local economy.
The goal is to create an environment where private companies will be able to produce stablecoins, and various market participants, including content creators, games developers and e -commerce platforms, will actively use them.
Criticism
Some industry experts questioned the effectiveness of the initiative.
He added that the initiative may have unpleasant consequences, exposing the country’s monetary system to speculative use on world cryptocurrences. The specialist also sees the risk that the stablecoins will become “proxy-CBDC” and open the doors for financial censorship.
Instead of promoting “stable coins” on the basis of Vona, Payk suggested that South Korea follow the path of Salvador – to create a national reserve in the first cryptocurrency.
The position of the authorities
Ben Dock admitted that Vaughn does not apply to the main world currencies, but claims that there is a “real demand” attached to it. He connects him with the global expansion of Korean content, games and services of e -commerce.
The deputy held a clear border between private “stable coins” and CBDC. According to him, the release of tokens will be carried out exclusively by the private sector and determined by market demand. At the same time, the basic requirements for the disclosure of reserves and registration of issuers are “inevitable” to comply with the International AML/CFT standards.
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Source: Cryptocurrency
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