$BTC

Is South Korea, a major player in cryptocurrency trading, "resisting" the dollar stablecoin? Eight major banks join forces to issue a Korean won stablecoin!

As a globally recognized powerhouse in cryptocurrency trading, South Korea is taking a series of measures to reduce its reliance on dollar stablecoins, while eight major banks are collaborating to issue a Korean won stablecoin.

• Reasons for "resisting" the dollar stablecoin: When South Korean investors purchase stablecoins, they primarily buy USDT or USDC, which effectively exports capital to U.S.-controlled financial infrastructure. In the first quarter of 2025, the trading volume of dollar-pegged stablecoins in South Korea reached 57 trillion won, accounting for more than half of the national stablecoin trading volume, indicating that sovereign financial control is flowing out. Moreover, stablecoins may become a channel for money laundering and capital flight, bypassing South Korea's foreign exchange controls, posing a potential threat to South Korea's monetary sovereignty and financial system.

• Situation regarding the issuance of the Korean won stablecoin by eight major banks: Eight major banks in South Korea, including KB Kookmin Bank, Shinhan, Woori, NH Nonghyup, IBK Industrial Bank, the Fisheries Association Bank, Citibank Korea, and Standard Chartered Korea, are collaborating with the Open Blockchain and DID Association and the Financial Settlement Institute to establish a joint venture for a Korean won stablecoin. The preliminary plan includes two types of stablecoin models: trust-based and deposit-linked, with the company expected to be established by the end of 2025 or early 2026 at the earliest.

• Relevant policy support: The "Digital Asset Basic Law" establishes a regulatory framework for South Korean companies to issue won-backed stablecoins, with a capital requirement of 500 million won (approximately 370,000 USD) allowing companies to enter the stablecoin market. This relatively low threshold is aimed at encouraging domestic competition while maintaining minimum standards.