Circle CEO Says Korea Needs Privately Led Won Stablecoin

Jeremy Allaire, chief executive officer of Circle, the issuer of the USDC stablecoin, said South Korea needs to adopt a privately led won stablecoin to preserve the competitiveness of its economy.

At a closed-door press briefing in Seoul's Gangnam district on Aug. 13, Allaire said all major currencies and economies will eventually move through a process in which value is exchanged on-chain. He said Korea must build an on-chain version of the won in the form of a stablecoin if it wants to avoid being left out of the future digital economy.

Allaire also said a private-sector-led model, with government oversight, would be preferable to a state-led approach. To maximize the benefits of "programmable money," including frictionless value transfers and software automation, innovation should be driven by private companies such as banks and technology firms, he said. He added that this reflects the global trend.

South Korea's financial authorities are reviewing a consortium model for won stablecoin issuance under which banks would hold a majority stake of more than 50% plus one share, with fintech companies participating. On the same day, Bank of Korea governor nominee Shin Hyun-song said in written responses for his confirmation hearing that bank-led issuance of a won stablecoin is the best alternative for managing risk, signaling a preference for financial-sector stability over issuance by private companies.

Against that regulatory backdrop, Allaire said it would be difficult for Circle to issue a won stablecoin directly. He added that the company would seek a formal entry into Korea by setting up a local unit and obtaining a license once regulations become clearer.

"We are not considering issuing a won stablecoin," Allaire said. "If Korean regulations become clearer, Circle will establish a local entity and formally enter the Korean market."