South Korea Stablecoin: Revolutionary Progress in Digital Payments

Key Points

1. Toss (Viva Republica) is collaborating with Bithumb to develop a stablecoin-based payment system, integrating crypto into mobile finance.

2. Naver Pay and Upbit are working on a KRW-pegged stablecoin, leveraging Naver's extensive e-commerce user base for adoption.

3. A KRW-pegged stablecoin would function similarly to other fiat-backed stablecoins like USDT or USDC, maintaining price stability through KRW backing.

4. Potential benefits include faster, cheaper transactions and financial inclusion for those underserved by traditional banking systems.

5. Regulatory concerns include AML and CTF compliance, reserve backing, and potential competition with Central Bank Digital Currencies (CBDCs).