BITPRISMIA
South Korea's stringent currency controls, stemming from the 1997 Asian financial crisis, hinder the development and cross-border use of a won-backed stablecoin, limiting digital currency innovation in the country.
South Korea faces challenges in developing a won-denominated stablecoin due to the absence of suitable short-term government bonds, which are crucial for stablecoin reserves, and regulatory hurdles that need to be addressed.
South Korea is transitioning to a licensing model for won-backed stablecoins, emphasizing higher capital requirements and stricter oversight to ensure stability and consumer protection.
Shinhan Bank is conducting a proof-of-concept project to integrate Korean won-based stablecoins into its Ddangyo app for everyday transactions, aiming to revolutionize payments with faster, cheaper, and more secure methods.
The Bank of Korea warns about the risks of non-bank issued won stablecoins and emphasizes the importance of its central bank digital currency (CBDC) initiative, the Han River Project, for financial stability.
The Bank of Korea (BoK) has filed 44 trademark applications for its Central Bank Digital Currency (CBDC), including names like 'Digital Won' and 'KRDW', signaling active preparation for its future digital currency.
Danal, a South Korean payments company, has filed 20 trademark applications for its stablecoin initiatives, signaling a strategic push into the Korean stablecoin market and digital finance.