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Analysis: South Korean Won Stablecoin Faces Doubts Due to Onshore Policy Restrictions
Summary: According to reports, the Bank of Korea has abandoned its central bank digital currency pilot and shifted towards stablecoins issued by the private sector, prompting financial technology companies and banks to accelerate their efforts. KakaoBank is considering entering the issuance and custody business, while Upbit and Naver Pay are collaborating to develop payment-type tokens to ...
According to reports, the Bank of Korea has abandoned its central bank digital currency pilot and shifted towards stablecoins issued by the private sector, prompting financial technology companies and banks to accelerate their efforts. KakaoBank is considering entering the issuance and custody business, while Upbit and Naver Pay are collaborating to develop payment-type tokens to narrow the gap between local and global crypto prices. However, due to onshore regulations restricting won transactions, overseas institutions cannot directly exchange won abroad, limiting the use of won stablecoins to KYC addresses connected to South Korea and hindering cross-border settlement.
Analysts believe that the token lacks payment efficiency advantages in the domestic instant and free transfer system, with its main applications likely limited to domestic scenarios. (CoinDesk)
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