According to South Korean local media News1, Lee Eok-won, a candidate for chairman of the Financial Services Commission (FSC), stated in a written response submitted before the upcoming FSC chairman confirmation hearing that cryptocurrencies have no intrinsic value, sparking heated discussions in the industry.
In a written response, Li Yiyuan noted that cryptocurrencies, due to their high price volatility, are unable to fulfill the basic functions of currency, such as serving as a store of value or medium of exchange. He argued that this characteristic distinguishes them from traditional financial products, such as deposits and stocks. He also expressed skepticism about allowing pension and retirement funds to invest in digital assets, citing market volatility and its speculative nature. He also mentioned that while the FSC is exploring plans to allow local companies to launch spot ETFs, many concerns remain.
Industry backlash and expert rebuttal
Li Yiyuan's remarks sparked strong opposition from local industry insiders. Many viewed his views as overly conservative, particularly at a time when many governments and businesses around the world are actively incorporating cryptocurrencies into their balance sheets and strategies. The report further noted that blockchain experts countered that Bitcoin and other cryptocurrencies possess practical value in terms of "digital utility," such as security and transferability on blockchain networks, which sufficiently justify their application value.
Stablecoin policy supported
However, it is worth mentioning that Li Yiyuan expressed a different stance on stablecoins, stating that he would seek to strike a balance between innovation opportunities and security measures.
With the support of President Lee Jae-myung, South Korea is moving forward with a regulatory plan aimed at allowing the issuance of a local won-denominated stablecoin. This move aligns with global trends aimed at protecting monetary sovereignty in the Web3 era. As a candidate for FSC chairman, Lee Won-yi supports the stablecoin trend, but remains skeptical of other cryptocurrency innovations. This stance highlights the complex global approach to cryptocurrency regulation: the desire to seize the opportunities of the digital economy while trying to strike a balance between market stability and investor protection.
