Kakao is preparing to launch a stablecoin linked to the South Korean Won, awaiting a new legal framework

Kakao, South Korea's leading internet conglomerate, is preparing to launch a stablecoin linked to the South Korean Won (KRW) through their participation in the Kaia blockchain. This move is evidenced by Kaia registering trademarks related to KRW, signaling a potential step into the cross-border payment space. #Korea

Strategic vision and broad application

With Kakao and #KakaoPay on the board of directors of Kaia, this project aims to integrate the KRW stablecoin into Kakao's application ecosystem, which has over 49 million monthly active users in South Korea. This will allow users and businesses to easily access DeFi protocols and decentralized financial applications.

Challenges from legal and application issues

However, the launch of this stablecoin still depends on the legal framework currently under discussion in South Korea. The bills regarding stablecoins still have many unresolved points, especially concerning licensing regulations, reserves, capital requirements, and the role of banks.

Experts also point out that, compared to USD-based stablecoins, the stablecoin #KRW may face challenges in finding clear use cases. South Korea's strict foreign exchange control regulations may limit the initial application of this stablecoin in cross-border payments, one of the biggest advantages of stablecoins.