Asia Morning Briefing: Korea’s 'Onshore' Won Policy Could Hinder Its Stablecoin Ambition

Key Points

1. South Korea has kept the Won domestic since the 1997 Asian Financial Crisis, limiting its international use.

2. A Won stablecoin would require whitelisted, KYC-verified addresses tied to Korea, reducing its broader utility.

3. Domestic interbank transfers in Korea already operate efficiently, leaving little need for a KRW stablecoin.

4. Taiwan faces a similar issue with its dollar, which is freely convertible but cannot be used offshore.

5. A Hong Kong Dollar stablecoin might have more global utility compared to Won or NTD stablecoins.