From buying coffee at Starbucks to purchasing lipstick at Olive Young, a growing number of Koreans are embracing stablecoins for everyday payments, often through overseas third-party payment platforms.
Korea and Germany may sit on the opposite sides of the globe, but they share striking economic parallels. Both rose to prosperity within decades on the back of manufacturing and strong exports, anchored by world-class car industries.
Hana Financial Group said Thursday it had signed an agreement with crypto exchange operator Dunamu to jointly develop financial services using blockchain technology, including an overseas remittance system expected to speed up cross-border payments.
Legislation for won-based stablecoins is stalled due to disagreements between regulators and the Bank of Korea on bank ownership. Concerns about innovation and market participation persist as firms hesitate amid unclear regulatory guidelines.
The Bank of Korea has warned that digital tokens pegged to the won could repeat past monetary failures if not backed by public trust and strict oversight, as lawmakers rush to pass the country’s first stablecoin law by the end of the year.
The flow of U.S. dollar–pegged stablecoins between major Korean cryptocurrency exchanges and a Cambodia-based exchange accused of money laundering surged nearly 1,400-fold in 2024, raising concerns that local platforms may have been exploited.
The Democratic Party proposed a bill to institutionalize stablecoins, marking the first legislative initiative from the National Assembly-controlling party to concretely realize President Lee Jae Myung’s campaign pledge on the issue.
While the United States and Europe charge full speed into the stablecoin era, Korea is caught flat-footed — with lawmakers stalled, regulators silent and corporate giants circling a trillion-won prize they’re not yet allowed to touch.
Citigroup may issue its own stablecoin in an effort to facilitate digital payments, the bank's CEO, Jane Fraser, told analysts on a post-earnings conference call on Tuesday.
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