South Korea eyes stablecoins

Stablecoins are coming to South Korea, with buy-in from the country’s central bank and broader financial sector.

Eight major South Korean banks are developing a won-backed stablecoin in an attempt to curb US dollar dominance in the country. The stablecoin rollout could begin later this year or early next year.

The Bank of Korea’s deputy governor, Ryoo Sangdai, wants regulated financial institutions to be the primary issuers of stablecoins in the country, according to local media reports.

“The aim is to establish a safety net, considering the potential for market disruption or consumer harm,” Sangdai said.

Stablecoins are a $239 billion market, according to industry data. However, 99% of that value is tied to the US dollar.