South Korean Banks Boldly Push for Revolutionary Interest-Bearing Won Stablecoin

Source: CryptoNewsNet Original Title: South Korean Banks Boldly Push for Revolutionary Interest-Bearing Won Stablecoin Original Link:

Strategic Move in Financial Landscape

In a strategic move poised to redefine the nation’s financial landscape, South Korea’s banking sector is consolidating its position to advocate for the issuance of a government-backed digital currency. Crucially, the banks are pushing for a won stablecoin model that would allow them to pay interest to holders, a proposal that could fundamentally alter the relationship between traditional finance and digital assets. This initiative emerges as the South Korean government prepares to enact the landmark Digital Asset Basic Act, setting the stage for a pivotal shift in monetary policy and consumer banking.

The Strategic Push for a Bank-Led Won Stablecoin

According to exclusive industry reports, the Korea Federation of Banks (KFB) orchestrated a pivotal private briefing for its members on January 15, 2025. This meeting, which included major commercial banks, served as a critical coordination point. The agenda focused squarely on establishing a unified, bank-centric model for issuing a Korean won-pegged stablecoin. Furthermore, discussions intensely centered on the novel proposal to permit interest payments within this regulatory framework. Consequently, this gathering was not an isolated event but part of an interim review of a comprehensive research project commissioned to explore the viability and structure of won-backed stablecoins.

Context and Regulatory Landscape

This banking initiative arrives at a moment of significant regulatory evolution. The impending Digital Asset Basic Act, expected to be enacted later in 2025, will provide South Korea’s first comprehensive legal framework for digital assets. Historically, the government and financial authorities have maintained a cautious yet increasingly structured approach toward cryptocurrencies and stablecoins. Previous regulations have focused heavily on anti-money laundering (AML) and know-your-customer (KYC) compliance for crypto exchanges. Now, the banking sector’s proactive lobbying indicates a desire to secure a dominant role from the inception of this new regulatory era. Essentially, banks aim to prevent non-bank fintech companies or global stablecoin issuers from capturing the market first.

Comparing Global Stablecoin Models

The South Korean proposal for an interest-bearing stablecoin distinguishes itself from existing global models. For example, widely used stablecoins like Tether (USDT) and USD Coin (USDC) do not typically pay interest to holders; their value is derived solely from the promise of holding equivalent fiat reserves. Conversely, the proposed Korean model more closely resembles a digital, blockchain-based savings account. The table below illustrates key differences: