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South Korea warns about stablecoins
A South Korean lawmaker says the country must quickly adopt stablecoins or risk losing control over its payment system.
He warned that dollar-based stablecoins are spreading fast and becoming normal in $BTC global trade.
Some Korean companies already accept dollar stablecoins, and small businesses are even paying foreign workers using them.
If rules come too late, Korea could lose its monetary sovereignty.
He believes a won-backed stablecoin is needed to protect the economy and help small businesses grow, instead of letting dollar tokens dominate.

South Korea Lawmaker Urges Rapid Stablecoin Adoption to Protect Won Sovereignty
A South Korean lawmaker warned the government must rapidly institutionalize stablecoins or risk losing control over domestic payment systems.
Rep. Min Byoung-dug from the Democratic Party of Korea addressed the eighth Global Business Forum in Seoul on Wednesday.
The Political Affairs Committee member said delays could leave Korea vulnerable as dollar-denominated digital currencies become embedded in global commerce.
What Happened
Min emphasized stablecoins are "no longer a question of whether we should do them or not."
The focus must shift to implementing them effectively and quickly.
He described dollar-pegged stablecoins as a new form of monetary power that countries cannot opt out of.
Korean companies already face pressure to accept dollar-based tokens in overseas trade regardless of domestic policy preferences.
Small businesses have started paying foreign workers in dollar-denominated stablecoins at employee request.
Min warned these practices will become routine before regulatory frameworks emerge.
"That's when monetary sovereignty disappears," he said.
Payment standards become difficult to reverse once widely adopted.
Read also: Ethereum Confirms Hegota Upgrade For 2026 After Glamsterdam Hard Fork
Why It Matters
South Korea lacks comprehensive stablecoin legislation despite active cryptocurrency trading.
The U.S., Japan, and European Union are moving faster to establish regulatory frameworks.
Min introduced the Digital Asset Basic Act in June 2025, which would allow corporations to issue won-backed stablecoins with minimum capital of 500 million won$BTC ($360,000).
However, Bank of Korea Governor Rhee Chang-yong has expressed concerns about non-bank entities issuing won-pegged tokens.
Korea handled 57 trillion won in dollar-pegged stablecoin trading in Q1 2025 alone.
Min stressed a won-backed stablecoin should serve as both defensive tool and growth strategy.
He suggested Korea could create differentiated use cases for cultural payments and small businesses.

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