South Korea has initiated a collaboration with the Avalanche blockchain to develop a won-backed stablecoin and overhaul national payment systems, aligning with its fintech advancement goals.
The partnership leverages Avalanche technology to automate financial processes through Travel Wallet, enhancing transaction efficiency nationwide. The project includes developing programmable stablecoins for intricate business-to-business settlements while integrating them with existing point-of-sale infrastructure.
Regulatory authorities are drafting stablecoin governance policies to establish market clarity and build institutional trust. This initiative holds potential to streamline cross-border payments and boost global financial interconnectivity using blockchain’s capabilities.
President Lee Jae-myung’s administration advocates a balanced regulatory approach supporting crypto innovation, including proposed frameworks for spot crypto ETFs and stablecoin oversight.