[Bitcoin Now] "Stablecoins as Next-Generation Financial Infrastructure... Proactive Response Needed"

Korea Fintech Industry Association Hosts Roundtable Discussion:
"Korean Won Stablecoin: Opening the Future of Financial Innovation"
Co-hosted by 12 Democratic Party Lawmakers

As stablecoins are establishing themselves as next-generation financial infrastructure, there have been calls for South Korea to respond proactively to avoid falling behind in the global competition.

On September 8, the Korea Fintech Industry Association held the first roundtable discussion titled "Korean Won Stablecoin: Opening the Future of Financial Innovation" at the Bulls Hall of the Korea Financial Investment Association. The discussion, held under the theme "Challenges for the Utilization and Expansion of Korean Won Stablecoins," was organized to discuss policy and technological issues for promoting and expanding the use of Korean won stablecoins, which are being highlighted as a new growth engine. The event was hosted by Assemblyman Ahn Dogeol of the Democratic Party of Korea.

In the first session, the first topic was presented by Seo Byungyun, Director of DSRV, under the theme "Stablecoins and the Future of Digital Finance." Seo explained that stablecoins represent the next generation of financial infrastructure. He pointed out that while the current payment system, which uses a separate closed network, requires time for both settlement and clearing, a payment system based on stablecoins can process these simultaneously. In addition, transaction fees are significantly lower, making it advantageous for consumers.

Seo Byungyun stated, "Stablecoins are becoming established as next-generation financial infrastructure that can replace SWIFT remittances and card payment structures," adding, "They are spreading across the real economy, including payments, remittances, and trade finance." He further emphasized, "Korean won stablecoins could also present a new vision for making Asia a financial hub."

There were also suggestions that the Bank of Korea should take a more forward-looking approach to the introduction of Korean won stablecoins. Ko Kyungchul, Head of the Electronic Finance Team at the Bank of Korea, said, "The Bank of Korea basically supports the use of blockchain technology as a digital payment method for Korean won stablecoins." He added, "If issuance is centered around banks, which have expertise in foreign exchange transactions and capital regulations, it will be possible to reduce potential risk factors."

In addition, Assemblyman Min Byungdeok of the Democratic Party of Korea stated, "Ultimately, the payment market is a matter of habit," emphasizing, "If it is confirmed that there are no risks when banks take the lead, it will become habitualized in other countries' payment markets as well, effectively ending the competition."

For the second topic, Song Hogun, Vice President of KakaoBank, gave a presentation on "Use Cases of Stablecoins." He explained, "If a Korean won stablecoin is issued, it could replace a significant portion of domestic users' transactions in dollar stablecoins." He also introduced various application cases, such as overseas remittances, instant settlement between wallets for payments, and regional currencies that can be operated more efficiently by using purpose-specific coins.

During the subsequent panel discussion, there were calls to consider other possibilities for stablecoins. Lee Jihyung, Head of Dunamu, remarked, "The current bills under discussion seem to focus too much on the payment function of stablecoins," and added, "Since payments are just one of the possible uses for stablecoins, it is important to leave room for various possibilities so that they can play a broader legal role." He further stated, "I hope that the necessary regulations will focus on the core nature of stablecoins, which is value stability."

In the second session, Shin Sanghoon, Visiting Professor at Yonsei University, served as moderator, and Jung Youngki, Attorney at Kim & Chang, gave a presentation on "Measures to Prevent Money Laundering with Stablecoins."

Attorney Jung Youngki emphasized, "Stablecoins are rapidly expanding in global payments and remittances, and their influence is growing to the extent that they threaten the monetary sovereignty of various countries. Therefore, strict anti-money laundering regulations are required from the issuance stage." He added, "In the process of institutionalizing Korean won stablecoins, it is essential to proactively establish an anti-money laundering system that meets international standards in order to secure trust in the global financial network."

Assemblyman Ahn Dogeol, who hosted the roundtable, stated in his opening remarks, "Stablecoins are the core engine driving the transition to a digital economy," and pledged, "Based on the opinions discussed today, I will do my utmost to lay the institutional foundation so that Korean won stablecoins can lead South Korea's digital economic transformation."