South Korea Prepares to Launch Won Stablecoin Through Alliance of 8 Major Banks
According to reliable sources from Economic Review, eight leading banks in South Korea are collaborating to establish a joint venture to issue stablecoins based on the South Korean won. The participating banks include Kookmin, Shinhan, Woori, Nonghyup, Korea Development Bank, Suhyup, along with the South Korean branches of Citibank and Standard Chartered. This event marks an important step in integrating blockchain technology with the traditional financial system.
Stablecoin Issuance Model: Trust and Deposit Link
The project is currently in the stage of completing the common infrastructure, with two stablecoin issuance models being considered. The first model is the trust model, where customer funds are managed separately and the stablecoin is issued based on trust in this balance. The second model is the deposit Token model, which allows the stablecoin to be directly validated by the deposit account balance at the bank. Both options have the potential to create stable, low-volatility Tokens suitable for payment needs in the cryptocurrency ecosystem.
Launch Timing and Market Impact
If regulatory approvals are successfully obtained, the joint venture is expected to officially launch by the end of this year or early next year. The issuance of the won stablecoin by a group of leading banks will not only reduce the risk of cryptocurrency volatility but also promote cross-border payment capabilities, enhance liquidity, and create stability in South Korea's digital financial system. This will be a significant boost to make cryptocurrency more accessible and widely applied in the economic life.
The Importance of Joint Ventures in the Cryptocurrency Ecosystem
The collaboration between banks and organizations such as the Korea Financial Telecommunications and Clearing Agency along with the Open Blockchain and Decentralized Identifier Association reflects a strategy of sustainable and transparent development in stablecoin development. This joint venture not only enhances the credibility of the won stablecoin but also sets the stage for other digital assets based on distributed technology in the region.
South Korea's preparation to launch a bank-led stablecoin will usher in a new era for national cryptocurrency, increase competitiveness in the global financial market, and provide tangible benefits for users engaged in the increasingly developing digital ecosystem.
Source: https://tintucbitcoin.com/8-ngan-hang-han-quoc-ra-stablecoin/
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