South Korea Considers Digital Assets and Stablecoins in Won to Revitalize KOSDAQ

The Democratic Party of South Korea has recently proposed an innovative strategy to President Lee Jae-myung to energize the local tech market. The proposal suggests that digital assets, particularly security tokens and stablecoins denominated in won, could play a decisive role in the recovery of the KOSDAQ index, which the party aims to raise to 3,000 points. This approach represents a significant shift in how the country addresses the development of the digital sector.

Stablecoins in Wons: The Central Strategy

According to information released by NS3.AI, the democratic initiative focuses on encouraging startups and companies listed on the KOSDAQ to adopt stablecoins issued in the local currency. By maintaining the value of these digital currencies linked to the South Korean won, the goal is to facilitate transactions within the crypto ecosystem without exposure to the volatility of conversions to US dollars. This mechanism would allow local investors to participate in the digital market with greater confidence, avoiding unnecessary exchange rate fluctuations.

Security Tokens to Energize Startups

The proposal also emphasizes the role of security tokens as a tool to attract capital and boost the growth of KOSDAQ startups. These digital financial instruments would facilitate the tokenization of traditional assets, enabling tech companies to access new sources of funding. Strengthening the startup ecosystem could be the necessary lever to restore the dynamism of the stock index.

The Role of Financial Institutions in Question

A key aspect of the proposal is the recommendation that the development of stablecoins not be controlled exclusively by banking entities. The Democratic Party believes that this process should involve multiple actors from the crypto and tech sectors, ensuring greater decentralization in the issuance and management of these digital currencies. This stance reflects confidence in decentralized mechanisms and a concern to prevent the concentration of monetary power in the hands of traditional financial institutions.

The South Korean initiative marks a trend where politicians and legislators recognize the potential of digital assets to revitalize national financial markets, considering the importance of the won as a reference currency in crypto transactions.