Rep. Min Byung-deok: 'Won Stablecoin is a Strategic Asset for South Korea's Economy'

The debate surrounding the digital asset market is intensifying. Once viewed as symbols of 'speculation' and 'gambling,' virtual assets are now being discussed as strategic industries related to national financial order, monetary sovereignty, and payment infrastructure in the AI era. The United States, Europe, Japan, and Hong Kong are already accelerating the establishment of regulations related to stablecoins and digital assets, and voices in South Korea are growing louder, urging that action can no longer be delayed.

At the center of this movement is Min Byung-deok, a member of the Democratic Party of Korea. Recently, he has garnered attention both inside and outside the political arena by introducing the 'Digital Asset Basic Law.' Min defines digital assets not merely as investment products but as a 'future financial infrastructure.' He emphasizes the need to develop the won stablecoin as a new growth engine for the South Korean economy.

Throughout the interview, Min stressed the importance of 'leadership that understands the pace of change.' He stated, 'Payments in the AI era will inevitably move toward digital assets,' adding that 'sovereign AI and the won stablecoin are key components of South Korea's future security and economic strategy.'

— You graduated with a degree in political science and worked as a lawyer before entering politics. What motivated your recent active involvement in the digital asset sector?

'During my university years, I was involved in poverty movements in demolition zones and hillside neighborhoods. We advocated for permanent rental housing for tenants in redevelopment areas. That experience highlighted the importance of regulation. Without a system, the public suffers. The same applies to digital assets today. The phenomenon is already massive, but the lack of regulation is causing confusion.'

— Were you initially positive about digital assets?

'Honestly, I used to think of coins as akin to gambling. However, upon closer examination, I realized that with regulation, this could become an industry. It has the potential to create significant jobs and economic opportunities, yet we had been neglecting it.'

— You often refer to yourself as a 'people's politician.'

'Ultimately, politics is about taking responsibility for people's lives. During the COVID-19 pandemic, self-employed individuals suffered immense losses due to gathering bans, yet no one discussed compensation. I protested in front of the Blue House and pushed for loss compensation laws. I believe that addressing people's livelihoods is not just talk; it requires commitment until solutions are found.'

— Do you view digital assets as a livelihood issue as well?

'Absolutely. It represents a future economic opportunity, and neglecting it will harm the public. We risk missing out on the chance for industrial growth.'

— What is the core of the Digital Asset Basic Law?

'In short, it aims to shift coins from the realm of speculation to that of regulation. Until now, they have been left unattended. However, if regulated as stablecoins, they can become payment methods and financial infrastructure. I believe it serves as the foundational law for designing South Korea's future financial system.'

— Why do you believe now is the right time for legislation?

'The world is already moving forward. Hong Kong, Singapore, and the United States are all tokenizing real-world assets (RWA). Payment and remittance infrastructures are being restructured around digital assets. Meanwhile, we are still deliberating whether to proceed. The technology is already sufficient, but the regulation is lagging.'

— How do you evaluate South Korea's competitiveness in digital assets?

'South Korea ranks as the third-largest market globally, following the United States and China. We are certainly not lagging behind. The issue lies in regulation. The U.S., Japan, and Hong Kong are all advancing, yet we still lack rules. Despite this, we maintain our position as the third-largest market.'

— Is there significant interest from foreign companies?

'Absolutely. Once regulations are established, many companies are eager to operate in South Korea. The country has a high level of acceptance for digital assets.'

— You emphasize the term 'digital assets' instead of 'virtual assets.'

'Referring to them as virtual assets makes them seem non-existent and unrealistic. However, these are actual assets functioning in the digital space. Think of them as digital gold. It's not just a matter of terminology; it's about changing perceptions.'

— The public perception still leans heavily toward speculation.

'That's because many haven't tried it. Once people use it, they find it convenient and low-cost. Ultimately, as regulations are established and various use cases emerge, perceptions will naturally shift.'

— The bill also includes provisions for fully allowing ICOs.

'Until now, we have been caught between prohibition and neglect. I advocate for orderly permission. We should allow participation in line with global standards while clearly regulating activities.'

— This will significantly impact the startup ecosystem.

'Absolutely. Fundraising will become much easier. It's akin to laying down the tracks for a railway. We are establishing the rails for the future financial payment system.'

— You have set the capital for issuing won stablecoins at 500 million won.

'Setting it too low or too high poses problems. The key is not the capital size but how securely we can manage and redeem the reserve assets.'

— Can you explain the concept of reserve assets simply?

'For example, to issue one coin, you would need to hold 1,000 won in actual reserves. If cash is needed again, it can be exchanged for 1,000 won at any time. Ultimately, stability comes from managing reserve assets and the redemption system.'

— Are there concerns about a bank run?

'There can be no bank run if we hold 100% of the reserve assets. While banks keep only a portion as reserves, stablecoins are structured to hold the full amount.'

— You proposed establishing a Digital Asset Committee directly under the President rather than under the Financial Services Commission.

'This is not an issue that the Financial Services Commission can handle alone. It connects with the Bank of Korea, the Ministry of Science and ICT, tax, and trade issues. Given that this is a national strategic industry that will shape the future financial order, it should be under the President's direct oversight.'

— The Bank of Korea and financial authorities are somewhat conservative.

'I understand the conservatism of central banks. However, in the field of innovation, we need an approach that manages risks rather than eliminates them. We cannot ban cars just because they are dangerous.'

— Why do you oppose a bank-centered structure?

'Officials from Hong Kong's financial authorities have expressed similar sentiments. Banks are defenders, not attackers. Innovation should be led by the private sector, while banks can play a role in ensuring stability.'

— What changes do you anticipate if the bill passes?

'Talent and technology that have gone overseas will return. There is a high likelihood that global companies will flock to South Korea. Nearly 30% of the population has experienced digital assets. We have one of the highest levels of acceptance in the world.'

— Ultimately, this is a strategy for becoming a financial hub.

'Exactly. While the U.S. will continue with a dollar-based system, we can pursue a won stablecoin strategy based on content and platforms. The country that dominates the payment system will control the future.'

— You have defined digital assets as a national strategic industry.

'Payments in the AI era will inevitably transition to digital assets. Therefore, I view sovereign AI and the won stablecoin as a unified strategy. This is not just about finance; it is a matter of national security strategy.'

— What kind of leadership does South Korea need?

'Leadership that understands the direction and pace of change. We must boldly foster areas that need growth and listen and coordinate to address areas requiring distribution. Future industries like digital assets should be nurtured, while existing industries must establish fair distribution structures.'

Min Byung-deok is a member of the Democratic Party of Korea, having graduated from Seoul National University with a degree in political science. After passing the 40th National Bar Examination, he worked as a lawyer. He has been active in the field of economic justice through the Lawyers for a Democratic Society and later entered politics, currently serving as a two-term representative for Anyang Dong-nan. He has focused on financial and livelihood policies in the National Assembly's Political Affairs Committee, actively pursuing legislation related to loss compensation during the COVID-19 pandemic and consumer protection in finance. Recently, he has taken the lead in policies regarding digital finance and stablecoins by introducing the Digital Asset Basic Law. He defines digital assets not merely as investment products but as 'the future financial infrastructure of South Korea,' emphasizing the need to develop the won stablecoin as a strategic asset for national security in the AI era.



* This article has been translated by AI.

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