An Yoo-hwa, president of the China Securities Administration Research Institute (CSAI), emphasized that "Stablecoins are becoming an important monetary policy tool that can stably maintain US Treasury demand" and stressed that "Korea should also design a capital market-based stablecoin structure with global competitiveness".
At the global Web3 roadshow 'IXO™ Season 3' held at the Seoul Textile Center on the 25th, An explained the US economic structure and the essential meaning of stablecoins, stating that "simply approaching stablecoins as a means of price stability or payment method makes it difficult to understand their essence".
An said, "The US has reorganized household income to be centered on financial income due to manufacturing hollowing-out, forming a continuous growth structure in the financial market." He explained that "as US companies transfer capital and technology overseas, the manufacturing base has weakened, and an asset appreciation structure through the financial market has been established".
He analyzed that "behind the continuous growth of the US financial market is a structure where global trade surplus countries reinvest dollars back into US Treasury bonds or stock markets." He added that "trade surplus countries like China, Japan, and Korea operating dollars in US financial assets instead of directly disposing of them have been the driving force behind the S&P 500 index rise".
He diagnosed that "after the 2008 financial crisis, the US government had to transition to a government-led economy as private consumption and corporate investment decreased, and has expanded fiscal spending through Treasury bond issuance." However, he evaluated that "with the number of Treasury bond purchasers decreasing, limitations are appearing in the government's fiscal sustainability".
He expressed concern that "if a shortage of Treasury demand occurs amid the trend of major bond-holding countries like China and Japan reducing their US Treasury bond proportion, the US government's fiscal operation could become difficult".
An pointed out that "the Trump administration's promotion of manufacturing return policy is also due to this background" and that "while the US attempts to bring production bases back domestically, there are limitations in maintaining the dollar's international circulation structure." He added that if the US trade balance shifts to a surplus structure, it could disrupt the dollar circulation mechanism.
An diagnosed that "as long as the dollar's key currency status is maintained, dollar strength will continue even during economic recession, causing US manufacturing jobs to gradually decrease and government debt ratio to continuously grow." He said that "the Trump administration is pursuing tariff increases and manufacturing return policies while requesting alliance cooperation to respond to decreased Treasury demand".
Furthermore, he explained that "amid the recent dollar demand decline, the US government is exploring new solutions through digital asset utilization" and that "Trump's plan to secure Bitcoin as a reserve asset and make the US the world's largest digital financial hub is part of this strategy".
He specifically noted that stablecoins are becoming an important monetary policy tool that can maintain Treasury demand even if the Federal Reserve does not lower interest rates. He explained that "as the USDT issuer holds dollars and purchases Treasury bonds, USDT issuance expansion leads to stable US Treasury demand".
He emphasized that "stablecoins essentially maintain demand for US Treasuries and have a positive impact on maintaining the US government's debt structure." He added that "since the Federal Reserve also uses Treasuries as collateral when issuing dollars, stablecoin proliferation is structurally advantageous to the US government".
He further stressed that "in the USDT issuance structure, 1 USDT issuance involves holding Treasury bonds equivalent to 1 dollar, essentially performing a quasi-Federal Reserve function" and that "as stablecoin issuance increases, US Treasury demand expands based on global individual investors, and the US government is stabilizing its bond sales structure".
He warned that "if stablecoin issuers invest in poor assets or are negligent in risk management, it could lead to a global financial crisis." He added that "since stablecoins are issued privately, they cannot perform a lender of last resort role, potentially causing greater shocks during system risks." The explanation suggests that while traditional financial structures increase global risks through US economic debt, stablecoins buffer this, but also carry inherent risks.
An then explained the global competitive environment, focusing on China and Hong Kong's digital financial strategies and Korea's stablecoin policy direction and challenges.
He said that "China has been reducing its dollar asset dependence since the 2008 financial crisis" and explained that within China, private digital asset use like Bitcoin is prohibited, and they are pursuing an international payment strategy centered on digital yuan (CBDC).
However, he stated that without introducing stablecoins, they would be dependent on USDC or USDT and fall behind in the global financial order, so they are pursuing a strategy to nurture Hong Kong as a digital financial hub and utilize it as an intermediary in the global payment network.
An said that "stablecoin issuance will be fully permitted in Hong Kong from August" and "this will serve as an intermediary in the US-China digital financial hegemony competition".
He subsequently emphasized that Korea, as a trade-centered country, should take the initiative in trade finance using stablecoins.
Currently, the bank-centered stablecoin structure under review by Korean authorities lacks global competitiveness, but if there is sufficient basis for stablecoin utilization such as foreign worker remittance demand and global K-content demand, "we can secure competitiveness by actively designing a model of stablecoin linked to reducing foreign worker remittance fees and K-content based RWA".
Furthermore, "in the digital era, the financial order depends not on who regulates first, but on who designs the structure first". "Korea should focus on technical design and actual usage, and it will be difficult to secure global competitiveness with a regulation-centered approach".
'IXO™ Season 3' is a Web3 conference centered on 'investment practice', which will be held on the 24th (Tuesday) and 25th (Wednesday) at the Seoul Textile Center. It is a joint event hosted by blockchain media Token Post and Coin Leaders, and co-organized by the decentralized data trust protocol 'Openledger'.
IXO™ presents a fundraising concept that goes beyond the existing ICO, IEO, and IDO methods, making it more Web3-friendly and community-centric. At the first event last April, over 1,000 people gathered, opening a new chapter in the Web3 community, and expanded this flow further through Season 2 with the theme 'Embrace the Future' in July.
The theme of Season 3 is 'Proof of Business'. It is planned as a practical Web3 conference that highlights only projects that have actually proven actual usability, profitability, and user base beyond technological vision and marketing.
Domestic and foreign blockchain experts, DAO operators, practical investors, researchers, and traders will participate to provide effective insights from an investor's perspective. With project booths, custody demos, and networking, it is expected to be an opportunity for communities and individual investors to meet verified Web3 projects.
Registration for IXO™ Season 3 is possible through the Luma link. Real-time notices and more details can be checked through the social media channels below.
IXO™ 2025 Official Channels
Website https://www.ixo.day
Twitter https://twitter.com/ixo_day
LinkedIn https://www.linkedin.com/showcase/ixoday
