TLDR
South Korea urged to integrate Bitcoin into national reserves amid global crypto momentum
Democratic Party and industry leaders propose won-backed stablecoin development
Trump signed executive order for Bitcoin Reserve and hosted White House crypto summit
Experts warn Korea risks losing “monetary sovereignty” without domestic stablecoin
South Korean regulations currently prevent non-residents from trading on domestic exchanges
South Korean financial experts and opposition politicians are urging the government to add Bitcoin to national reserves and develop a won-backed stablecoin. This call comes in response to recent US moves in the cryptocurrency space under President Donald Trump’s administration.
At a forum held on March 6, 2025, at the National Assembly by the main opposition Democratic Party, industry leaders discussed potential strategies to address global shifts in cryptocurrency finance. The meeting took place just before Trump signed an executive order establishing a Bitcoin Reserve and crypto stockpile.
A closer glimpse at the summit’s agenda… pic.twitter.com/ktuXYRe1fk
— Sander Lutz (@s_lutz95) March 7, 2025
Kim Jong-seung, CEO of blockchain firm xCrypton, stressed the need for a clear response from South Korea. “If the US moves toward holding bitcoin as part of its reserves, South Korea will need to respond with a clear policy,” Kim said at the event.
The discussions reflect growing international momentum toward cryptocurrency adoption. Countries like Switzerland and Japan have already taken major steps in this direction. Switzerland has established “Crypto Valley” in Zug as a global hub for blockchain startups, while Japan legalized yen-backed stablecoins in 2023.
Rep. Kim Min-seok, who leads the Democratic Party’s policy preparation committee, indicated his party would reshape the country’s crypto regulations if it returns to power. South Korea could hold an election in May if President Yoon Suk Yeol’s impeachment is confirmed by the Constitutional Court.
The forum also highlighted the importance of developing a won-backed stablecoin for South Korea’s financial future. Kim Jong-seung warned that without a domestic stablecoin alternative, the country risks losing “monetary sovereignty” if USD-pegged stablecoins dominate the digital economy.
“We need to develop a model linking dollar stablecoins and won stablecoins for trade transactions,” Kim told attendees. Unlike Bitcoin, stablecoins maintain a fixed value by being pegged to traditional currencies or assets such as government bonds.
South Korea’s Digital Currency Future
Economics professor Seo Eun-sook of Sangmyung University emphasized the urgency of aligning South Korea’s financial policies with global trends. She noted that “major economies like the US and the European Union are already working toward stablecoin-based international payment systems.”
Kang Hyoung-goo, a business management professor at Hanyang University, proposed a stablecoin backed by South Korean government bonds. He argued that such an initiative could enhance financial stability and attract more foreign investment.
According to Kang, one of the main barriers preventing South Korea from joining the MSCI Developed Markets Index is the absence of an offshore won market. A government-backed stablecoin could help address this issue by making won-denominated assets more accessible internationally.
The timing of these discussions is key, as they occurred just before President Trump’s executive order for a national Bitcoin reserve. By Friday afternoon of that same week, the White House hosted its inaugural crypto summit to outline the administration’s priorities for what they called the “crypto Renaissance.”
The Trump administration has not yet decided whether to sell other reserve assets like gold to acquire more Bitcoin. David Sacks, the White House Crypto Czar, told Decrypt, “There’s been no conversation about that.”
Beyond Bitcoin reserves, regulatory barriers in South Korea’s crypto sector were also discussed at the forum. Current regulations prevent non-residents from trading on South Korean cryptocurrency exchanges, pushing domestic traders to offshore platforms like Binance.
Cho Jung-hee, managing attorney at D.Code Law Group, expressed concern about the outflow of domestic capital. “In May 2023, about 13 percent of Binance’s total trading volume came from South Korean traders,” Cho noted.
Min Jung, an analyst at Singapore-based Presto Research, told Decrypt that Korea appears to be lagging behind other countries. “Korea is simply trying to catch up,” Jung said, noting that the country only recently approved corporate accounts for crypto and still doesn’t allow Bitcoin and Ethereum ETFs to be traded.
The push for cryptocurrency adoption in South Korea comes amid broader regional considerations. Michael Terpin, CEO of venture capital firm Transform Ventures, told Decrypt, “Asia in particular is still trying to weigh the impact that broad-ranging tariffs and trade wars will have on interest rates and global liquidity.”
