South Korea Considers Integrating Bitcoin Into National Reserves and Issuing a Won-Backed Stablecoin

SEOUL – South Korea should consider integrating bitcoin into its national reserves and issuing a won-backed stablecoin, financial experts and industry leaders said at a forum on Thursday.

South Korea should consider including bitcoin in its national reserves and issuing a won-backed stablecoin as part of broader efforts to integrate cryptocurrency into the country’s financial system, financial experts and industry leaders said at a forum on Thursday.

The suggestions, made at a seminar hosted by the main opposition Democratic Party, highlight the growing momentum toward cryptocurrency adoption globally, spurred by a U.S. push to integrate digital assets into its national strategic reserves.

The U.S. has been urging allies to follow suit, and countries like Switzerland and Japan have already taken significant steps in this direction. Switzerland’s “Crypto Valley” in Zug has become a global hub for blockchain startups and crypto finance, while Japan legalized yen-backed stablecoins in 2023.

The session at the National Assembly on Thursday was part of the Democratic Party’s policy preparation for a potential snap presidential election, if President Yoon Suk Yeol’s impeachment is confirmed by the Constitutional Court. May be the month for the election.

“As blockchain finance and virtual assets will play an increasingly significant role in economic strategy, it is essential to discuss virtual assets and blockchain finance,” said Rep. Kim Min-seok, who leads the party’s policy preparation committee.

South Korea’s foreign exchange reserves, used to stabilize national currencies and manage economic shocks, currently consist of traditional assets like U.S. dollars, gold and government bonds. But in a rapidly changing technological landscape, the experts said Thursday that the country should also explore the possibility of including bitcoin in its reserves and issuing a domestic stablecoin.

“If the U.S. moves toward holding bitcoin as part of its reserves, South Korea will need to respond with a clear policy,” said the CEO of blockchain firm xCrypton, Kim Jong-seung, adding that he fears the country could be left behind. U.S. President Donald Trump is expected to unveil a plan for the White House Crypto Summit on Friday.

At the seminar, hosted by the main opposition Democratic Party, several experts and industry leaders highlighted the urgency of aligning South Korea’s financial policies with global trends.

“Major economies like the U.S. and the European Union are already working toward stablecoin-based international payment systems,” said economics professor Seo Eun-sook of Sangmyung University.

suggesting that such an initiative could enhance financial stability and credibility.

According to Kang, one of the main hurdles preventing South Korea from joining the MSCI Developed Markets Index—a classification that would attract more foreign investment—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.

“A government bond-backed stablecoin could also help distribute South Korea’s long-term government bonds worldwide,” Kang said.

The discussion at the seminar also touched upon regulatory barriers in South Korea’s crypto sector. Due to strict regulations, non-residents are currently unable to trade on South Korean cryptocurrency exchanges, pushing domestic traders to offshore platforms like Binance.

“In May 2023, about 13 percent of Binance’s total trading volume came from South Korean traders,” said managing attorney Cho Jung-hee at D.Code Law Group, calling the outflow of domestic capital a significant concern. As more countries move to integrate cryptocurrencies into their financial systems, the experts said Thursday that South Korea needs to respond accordingly to maintain its standing in the global economy.