The growing influence of stablecoins is sparking debate about the need for a Korean Won (KRW) stablecoin. A recent report highlights concerns about capital flight as overseas exchanges offer significantly higher interest rates on stablecoin deposits compared to traditional Korean banks. Hashed Open Research (HOR) warns that dollar-based stablecoins like USDT and USDC are exacerbating the outflow of virtual asset capital, potentially weakening the domestic financial system and the Korean Won. These stablecoins sometimes offer returns as high as 5% for simply holding the coin in an exchange account. The lack of a competitive KRW-backed stablecoin incentivizes Korean investors to move their assets abroad. The report emphasizes that if this trend continues unchecked, the usability and control of the Korean Won could be seriously compromised. Developing a KRW stablecoin could help retain capital within Korea and provide a more stable on-ramp for Koreans into the digital asset ecosystem. ```

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