"Won Stablecoin, an Unstoppable Trend... Need to Design the System"

Hashed Open Research 'Won Stablecoin' Seminar

"An Unstoppable Trend... Urgent Need for Structural Design"

Industry Calls for Institutional Reform and Private Sector Preparedness

The call for the issuance of won stablecoins is growing louder. The industry agrees that "it's time to move beyond discussing whether to allow it and start designing proper structures and institutional reforms."

Yongbeom Kim, CEO of Hashed Open Research, emphasized at the 'Blueprint for Won Stablecoin for Digital G2' seminar held at Hashed Lounge in Gangnam, Seoul, on the 28th, "It's time to think about how to design won stablecoins, not whether to allow them," adding, "The global market is already reorganizing around stablecoins. Korea must design its own structure to protect its monetary sovereignty."

Kim stated, "Won stablecoins can be used not only as a simple payment method but also as a digital identity function and policy execution tool," adding, "Korea has the world's highest level of digital acceptance, content competitiveness, and payment platform integration capabilities, so if we design the structure well, we can also secure leadership."

He also pointed out that issues like infringement of monetary sovereignty and money laundering concerns arise in an unregulated state. He explained, "Institutionalized won stablecoins can be more precisely controlled than legal tender," adding, "The phenomenon of disintermediation can be overcome through bank counter design, and monetary sovereignty can also be protected through policy design."

"Comprehensive Reform of Accounting, Taxation, and Legal Systems is a Priority"

There was also a suggestion that comprehensive reform of the accounting and legal systems is a prerequisite for the issuance and introduction of won stablecoins into the real economy.

Jaehyuk Lee, a partner accountant at Samil Accounting Corporation, who attended the seminar, explained, "The reason why the practical use of won-based stablecoins is currently difficult is that corporate participation is institutionally restricted," adding, "Especially, stablecoins held by corporations are tied to cold wallet-based custody, making them unusable for real-time payments."

To solve this, he advised, "Regulatory improvements are needed, such as granting payment business licenses to virtual asset businesses or allowing corporate self-custody." He added, "Countries like Australia and Singapore classify stablecoins as derivatives and exempt them from VAT," emphasizing, "In Korea, institutional design is needed to prevent stablecoins from being abused as a means of VAT avoidance."

He also pointed out that stablecoins are in a blind spot for anti-money laundering (AML) and capital outflow monitoring.

He said, "Korea is also scheduled to participate in CARF (Cross-border Virtual Asset Transfer Information Sharing System), an international cooperation system, but the current system is limited to centralized businesses, making it still difficult to grasp decentralized finance (DeFi) or peer-to-peer transactions," adding, "There is a need to introduce a 'virtual asset cross-border transfer reporting system' in the Foreign Exchange Transactions Act or the Electronic Financial Transactions Act or to automatically collect transaction metadata through an API connecting issuers and DeFi."

"Stablecoins, Need to Pay Attention and Prepare"

Private financial companies are also paying attention to the potential spread of stablecoins. They are conducting internal analysis and learning in preparation for the potential reorganization of the entire payment industry.

Woosung Lee, an executive director at Samsung Card, stated, "If won stablecoins are commercialized, the entire value chain of the payment industry could change, so it is necessary to respond to this."

Lee pointed out, "There is still no clear guideline in Korea, so companies feel burdened to enter," adding, "As a result, foreign stablecoins are being used in the domestic market, but domestic players cannot participate institutionally, creating an asymmetric structure."

He continued, "It is desirable to start with a narrow scope of regulation and gradually supplement it if side effects occur," adding, "Interoperability with global stablecoins should also be considered. Samsung Card is also continuing related research and analysis to increase understanding of this market."