South Korea Takes Measured Approach to Won-Backed Stablecoin

Introduction of Won-Based Stablecoin: Major South Korean banks are planning a phased introduction of a won-based stablecoin, aiming to enhance financial stability through regulatory control.

Regulatory Compliance and Caution: The initiative will prioritize KYC compliance and involve only large banks, with Governor Lee Chang-yong emphasizing a cautious approach due to potential risks.

Impact on Financial Sector: This cautious introduction could reshape South Korea's financial landscape by reducing reliance on USD-pegged stablecoins and enhancing regulatory oversight.

Global Context and Predictions: The move towards domestic stablecoins is seen as part of a global trend for currency independence, with experts predicting a gradual shift towards anchoring currencies domestically, influencing regional dominance and necessitating regulatory adaptations.