Two of South Korea’s biggest political parties are on the centre stage, and have announced their rival Stubcoin bills within the country. The ban on paying interest on Stablecoins is the most controversial issue in the Stablecoin bill.
Lawmakers from both the ruling Democratic Party (DP) and the opposition People’s Rights Party (PPP) introduced laws in late July 2025 that could pave the way for winning stubcoins.
According to a local news report released on July 28, 2025,His ruling party believes interest payments should be banned to prevent market disruption, but the opposition believes that winning stubcoins need to be competitive. ”
Each proposal reflects differences in innovation, protection and financial sovereignty.
South Korea has introduced a stubcoin law to support winners led by President Lee Jae Myung. Key players Ahn Do-Geol and Jin Sung-Joon develop a framework focused on financial stability and draw lessons from the Terra-Luna Crisis. Moef and Bok will work together to secure regulators… pic.twitter.com/orjuxdwmfs
– binodes (@binodes_) July 29, 2025
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South Korea’s bill addresses the growing advantage of USD-based stubcoins
South Korean Democratic Party member Ando-Geol has introduced the “Law on the Issuance and Distribution of Valued Digital Assets.” On the same day, People Power Member Eun-Hye Kim introduced “Payment Innovation Method Using Fixed-Price Digital Assets.”
The DP initiative is the country’s first comprehensive legislative blueprint to specifically manage stubcoins that support South Korea’s victory. Meanwhile, the opposition PPP has submitted its own version that emphasizes stricter financial discipline and explicitly prohibits Stablecoin Holdings’ interest payments.
The newly elected South Korean president, Lee Jae-myeon, has openly advocated for stubcoin, and his administration shows that it will fill a major gap in the country’s financial environment.
Jae-Myung proposes low company eligibility in defending Stablecoins, as a 500m winner ($370,000) to be able to issue Stablecoins.
Exploration: Korea’s CBDC test paused in favor of stubcoin
South Korea suspends CBDC plans as Stablecoins acquire the ground
Increased market penetration and the adoption of stubcoin have put dampers on South Korea’s CBDC plan. The country has applied the brakes to its continued CBDC trial program since April this year, triggering the revival of Stablecoin amid political support.
The Bank of Korea (BOK) confirmed the current situation in a statement given to Bloomberg via its representative on June 30, 2025.
Additionally, senior representatives of one of the seven banks participating in the CBDC trial in South Korea have informed local publications of how the CBDC will consolidate until the central bank sees the government’s Stablecoin strategy.
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