Professor Kim Sangbong of Hansung University: "Card Companies Should Have Priority in Korean Won Stablecoin Payment Opportunities"

Presentation at the Korea Credit Card Association Conference

There has been an argument that, when introducing a Korean won stablecoin, existing payment service providers such as credit card companies should be given the first opportunity to participate in the business.

On the 21st, at the Bankers Hall in Euljiro, Jung-gu, Seoul, the Korea Credit Card Association held the "Transition to Productive Finance" conference. Photo by Chae-seok Moon

Kim Sangbong, Professor of Economics at Hansung University, made this suggestion on the 21st, emphasizing the need to design systems that respond to changes in the payment and settlement competitive landscape.

Professor Kim served as a presenter at the "Transition to Productive Finance" conference hosted by the Korea Credit Card Association at Bankers Hall in Euljiro, Jung-gu, Seoul, on the same day.

He explained that the introduction of stablecoins could significantly reduce both fees and processing times for international remittances by individuals and businesses.

He predicted that, as stablecoin cards linked to digital assets become more widespread, payment efficiency will increase.

He also anticipated the establishment of a system where real-time exchange rates are applied and payments can be made within the limits of one's assets without credit screening.

He noted that, compared to the existing payment system, fees would be lower and settlement times would be shortened.

Currently, the traditional card payment system involves multiple steps-customer, merchant, acquirer, card network, issuer, and multi-layered fees-resulting in settlement times of one to five business days.

With stablecoin card payments, the issuer and network stages would be streamlined.

Professor Kim stated, "In terms of Korean won stablecoin payments and settlements, card companies should be given the first opportunity to participate, and the system should be built on the card network. It is also necessary to establish a structure in which non-bank financial institutions can participate."