The 21st century global economy is currently engaged in two simultaneous currency wars. One is the visible battle over interest rates and exchange rates, while the other is a quiet struggle for dominance in digital currencies on the blockchain. Just as countries with oil once shaped the global order, those that control digital payment networks and stablecoins are poised to lead the future financial landscape.
Recently, a policy symposium at the Global Finance Conference in Seoul symbolically highlighted this shift. The forum, themed 'The Spread of Tokenized Securities (STO) and Stablecoins and Changes in Financial Economics,' was not merely a discussion on virtual assets; it was a national strategy meeting questioning the future viability of Korean finance.
Professor Lee Jong-seop's remarks were particularly significant. He asserted, 'The discussion on whether to adopt stablecoins is already outdated.' He warned that countries that delay action risk becoming mere consumers following the established order.
Currently, the market capitalization of dollar-based stablecoins has surpassed $300 billion. While this figure is still small compared to the global foreign exchange market or the U.S. Treasury market, its growth rate outpaces traditional financial systems.
What matters is not just the amount. Dollar stablecoins have evolved into a core infrastructure for international remittances, online payments, and digital asset transactions.
The United States does not view this as merely a private industry. It aims to establish a 'new Bretton Woods system' through dollar-based stablecoins in the digital age. Just as the petrodollar era was initiated by tying oil payments to the dollar, analysts suggest that a digital dollar system on the blockchain is being developed.
Tokenization of U.S. Treasury bonds is particularly symbolic. If U.S. Treasury bonds are traded in real-time on the blockchain, allowing global investors to access U.S. assets through dollar stablecoins, the dollar-centric structure in the digital financial market will be further reinforced. Ultimately, stablecoins are not just currencies; they represent a new technological facade of U.S. financial hegemony.
The challenge lies for countries like South Korea that do not have reserve currencies. If global digital payments are reorganized around dollar stablecoins, the international influence of the won could diminish significantly. As Korean companies and consumers engage more in the global digital market, a structure may emerge that subordinates them to the dollar ecosystem.
This is why Professor Lee emphasizes the need for a Korean model. His core argument is straightforward: create an 'expansive structure' based on central bank digital currency (CBDC) and bank deposit tokens, allowing the private sector to develop various won-based stablecoin services.
This model is meaningful because it reflects the realities of the Korean financial market. South Korea is neither a dollar hegemon like the U.S. nor a country with a strong capital control system like China. However, it possesses world-class IT infrastructure, a mobile payment culture, and a robust content industry.
Ultimately, South Korea's battleground is not 'reserve currency' but 'digital ecosystem.'
At this juncture, the significance of K-content emerges. BTS, K-pop, webtoons, games, dramas, and online fandoms have already formed a global consumption ecosystem that transcends borders.
Young generations around the world are consuming Korean content and connecting with Korean culture. If this consumption flow is linked to a won-based digital payment network, the situation could change.
For instance, if global fandoms use won-based stablecoins for music purchases, concert tickets, webtoon payments, and game item transactions, it would expand the digital financial ecosystem beyond mere content exports. This could ultimately increase demand for the won and expand the need for won-based deposits and Treasury bond collateral.
This structure could also invigorate the Korean capital market. Stablecoins fundamentally require collateral assets to maintain stability, necessitating safe and liquid assets.
Consequently, demand for deposits, Treasury bonds, and high-quality short-term bonds is likely to increase.
This could enhance the liquidity and depth of the entire Korean financial market, going beyond merely nurturing the virtual asset industry. It could also positively impact the internationalization of the Treasury bond market and the activation of the tokenized securities (STO) market.
The recent policy symposium at the Global Finance Conference is significant not just as an academic event but as a signal for a shift in Korean financial policy direction. Just a few years ago, Korean financial authorities tended to view virtual assets solely as speculative targets. However, the world is beginning to recognize stablecoins as the next-generation financial infrastructure.
In particular, major financial hubs such as the U.S., Europe, Singapore, Hong Kong, and the UAE are moving toward a dual approach of regulation and nurturing. The strategy is not to block digital assets but to bring them into the regulatory framework.
In the U.S., there is an effort to strengthen digital dollar hegemony through dollar stablecoins, while Europe aims to establish a euro-based digital payment ecosystem. Singapore is pursuing a global digital asset hub strategy, and Hong Kong is positioning itself as a digital finance gateway connected to mainland China.
If South Korea falls behind, it risks losing not only its blockchain industry competitiveness but also the possibility of being relegated to a peripheral country in future global payment networks and capital flows.
The most significant implication of this forum is that stablecoins are now being viewed as a 'financial order issue.' Stablecoins are no longer just cryptocurrencies; they have become part of a massive structural change connected to international finance, payment systems, Treasury bond markets, digital trade, and platform economies.
Currently, stablecoins can be categorized into four main types:
- Fiat-backed: Issued against U.S. dollars, Treasury bonds, or deposits, this type offers the highest stability and dominates the current market.
- Crypto-backed: Secured by cryptocurrencies like Bitcoin or Ethereum, this type has decentralized advantages but suffers from high price volatility.
- Algorithmic: This type maintains value by adjusting supply through algorithms, but past large-scale collapses have raised trust issues.
- CBDC-linked: This type connects private payment systems to central bank trust.
Most major countries are focusing on the first and fourth models. The U.S. is combining private stablecoins with the Treasury bond market, while China is building a state-controlled model centered around the digital yuan.
The key takeaway for South Korea is to focus on 'ecosystem strategy' rather than technology. South Korea lacks dollar hegemony like the U.S. and strong state control like China. Instead, it has competitive advantages in content and platforms.
Therefore, South Korea should build a unique model that integrates finance, culture, and platforms. It should not merely create coins but connect K-content consumption with digital payments, leading to innovations in tokenized securities and the capital market.
The future of a Korean won stablecoin ultimately hinges on K-content and the platform economy.
South Korea possesses world-class cultural content influence. K-pop, dramas, webtoons, and games have already formed a global digital consumption culture. If a won-based digital payment system is integrated, South Korea could evolve from a mere content exporter to a digital cultural and financial platform nation.
To achieve this, the role of policymakers is crucial.
First, a clear regulatory framework must be established. Uncertainty poses the greatest risk. It is essential to promptly define the issuance criteria for stablecoins, collateral regulations, and consumer protection systems.
Second, a collaborative ecosystem among banks, fintech companies, and content platforms should be fostered. The finance and cultural industries must work together to create synergy.
Third, capital market innovation linked to the tokenized securities (STO) market is necessary. If Treasury bonds, corporate bonds, and content IP can be tokenized, the structure of the Korean capital market itself could change.
Fourth, international cooperation strategies are also important. Particularly, there is a need for strategies to expand won-based digital payment networks in the Asian market.
Ultimately, stablecoins are not just virtual currencies. They represent a question of which country will dominate the platform in the future digital civilization order.
South Korea stands at a critical crossroads. If the new experiment connecting K-content and digital finance succeeds, the won could evolve from a minor non-reserve currency to a significant connecting currency in the Asian digital economy.
※ This article was generated using generative AI and has been reviewed by an editor.
* This article has been translated by AI.
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