Eight major South Korean banks, including KB Kookmin and Shinhan, are working on a won-backed stablecoin expected to launch between 2025 and 2026.
Project Goals and Participants
The initiative involves eight key banks developing a financial instrument that could reduce dependency on USD-backed stablecoins. This emphasizes a shift towards utilizing fiat-backed tokens and highlights private sector involvement.
Regulatory Support
Regulatory backing may significantly enhance the initiative's prospects. Ryoo Sang-dai, Deputy Governor of the Bank of Korea, stated that "banks should be the primary issuers of stablecoins before a gradual and careful rollout of such assets."
Market and Liquidity Impact
The launch of the stablecoin is expected to increase local DeFi activity and lessen reliance on USD stablecoins. This initiative may alter approaches to liquidity by offering alternatives to dollar-based options in the digital currency ecosystem.
The creation of a won-backed stablecoin could transform the local digital transaction landscape and enhance blockchain technology adoption in South Korea.
