South Korean Banks Plan Won-Pegged Stablecoin by 2026

Eight main South Korean banks will connect to start Stabnecoin tied to the country’s currency, which means a significant step towards receiving digital assets.

According to the Econovill Project includes Institution including KB KOOKMIN, Shinhan, Woori, Nongyup, Corporate, Suhyup, Citi Korea and SC First Bank. The aim of cooperation is to fight the increased dollar dominance due to the increase in stablecoins caused by the dollar.

Real tokenization monitor RWA.XYZ shows that stablecoins have a market capitalization of more than $ 239 billion. Data also shows that 99% of stablecoin issued is bound to the US dollar.

With the project, banks are trying to put South Korea in a position to compete on the global digital financing market.

Stablecoin project is expected to be launched in 2025 or early 2026

The project is expected to take place at the end of 2025 or early 2026. According to Econoville, this project is the first big step from traditional banks to enter the digital assets.

The non -profit open blockchain focused on the blockchain and the decentralized identity association expressed the support of the project. It will also be supported by the Korean Financial Telecommunications and Clearing Institute.

The report also stated that Stablecoin will accept a model based on the trust or scheme of a 1: 1 deposit, which is still subject to regulatory approval.

The Stablecoin initiative is coping with the wider legislative pressure on Create a clear regulatory structure For digital assets in South Korea.

On June 10, the ruling party of South Korea proposed a digital asset Act to allow stablecoin to be released and increase the growth of crypto markets in the country.

Related: South Korean young people turned to the crypto of despair

South Korea’s central bank leader expects potential problems

After developing Governor Bank of Korea Rhee Chang-Yong, she expressed concern that the creation of stablecoin could make it easier for holders to exchange currency for a dollar.

The clerk said that could hurt the currencyWhich is difficult for the central bank. However, the head of the central bank in the country said he was not against the release of Stablecoin.

Meanwhile representative of Governor Bank of Korea Ryoo Sangdai later said the introduction of Stabnekoin would win should be gradual. The official stated that banks should be the first entities to issue them to ensure the security network.

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