While the Bank of Korea has shelved its central bank digital currency (CBDC) project, the country's fintech sector is entering a new crypto boom. KakaoBank, South Korea’s largest internet-only bank, has officially announced its intent to dive into the rapidly growing stablecoin sector — and it's aiming high.
🔹 Stablecoins Instead of CBDC
Although the Bank of Korea’s CBDC pilot had reached the testing phase, it was abruptly halted this June after new legislation allowed private stablecoin issuance. That move opened the doors for fintech giants like KakaoBank to step in.
🔹 Strategic Entry: Issuing and Custody of Stablecoins
During Tuesday’s H1 earnings call, KakaoBank CFO Kwon Tae-hoon confirmed the bank is actively considering both stablecoin issuance and custody. The bank is aligning its strategy with broader market changes and is collaborating across the Kakao Group.
“We plan to respond quickly to changing market conditions,” said Kwon.
🔹 Tech-Ready and Compliance-Savvy
KakaoBank isn’t starting from scratch. The bank took part in both phases of the now-cancelled CBDC pilot, developing wallets, managing token transfers, and building operational infrastructure that few others in the market can match.
Additionally, with three years of experience issuing real-name accounts for crypto exchanges, KakaoBank is well-positioned to implement the KYC and AML frameworks regulators will require for fiat-pegged tokens.
🔹 Group-Wide Push Across Kakao Ecosystem
Stablecoins are now a top priority across the Kakao ecosystem. A dedicated task force is working weekly on the topic, with executives from Kakao, KakaoPay, and KakaoBank — including Chung Shin-ah, Shin Won-keun, and Yoon Ho-young — leading the initiative.
🔹 Investor Hype and Global Parallels
The stablecoin pivot has triggered a wave of speculation among Korean retail investors. Shares of Circle, which went public in June, became the most-purchased foreign equity in Korea.
Similar trends are happening in Hong Kong, where local companies are lining up for stablecoin issuance licenses, as interest in China’s CBDC has significantly cooled.
#Stablecoins , #crypto , #CBDC , #SouthKorea , #worldnews
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