South Korean Lawmaker Proposes Bank-Led Won Stablecoin Rollout

South Korea's efforts to create a comprehensive digital asset framework have stalled due to legislative delays. A ruling party lawmaker, Kim Sang-hoon, has proposed a two-track strategy for introducing won-denominated stablecoins.

The plan involves banks taking the lead initially to ensure stability, with fintech firms brought in later to handle distribution and drive innovation. This approach aims to balance stability and innovation, preventing volatility seen in unbacked cryptocurrencies.

Kim Sang-hoon's proposal includes a '50%+1' rule, requiring banks to hold a majority stake in stablecoin issuance, ensuring regulatory compliance and oversight.