"Virtual Assets Are Disrupting the Payments Market Landscape"

As virtual assets (cryptocurrencies) and traditional finance become more intertwined, the existing payment market is being reorganized around virtual assets.

Attorney Kang Sung-yoon of Kim & Chang attended the first regular meeting of the blockchain supply-demand consultative body on the 9th, stating, "Singapore and Japan have already completed the institutional integration of stablecoins (virtual assets pegged to fiat currency), and the United States is also on the verge of passing the Genius Act," adding, "virtual assets are practically transforming the payments market."

Kang outlined four notable global trends currently occurring.

Firstly, he noted that the institutional adoption of stablecoins is accelerating. He said, "Each country is considering whether easier, more convenient, and lower-fee payments are possible," and added, "stablecoins are emerging as a solution in this field."

He then cited 'BNY Mellon Bank' as an example, mentioning that traditional financial institutions are increasingly adopting blockchain. BNY Mellon plans to implement technology that reflects net asset value on the Ethereum (ETH) blockchain and will operate it in real funds. Kang stated, "Even traditional banks have now reached a level where they're developing and running their own blockchain services," and commented, "Innovation is no longer only for big tech companies."

Additionally, Kang commented that the acceleration of virtual asset adoption in the payments market and fintech, along with the increasing sophistication of blockchain-based payment services, are also global trends. He said, "Payment and fintech companies are swiftly accommodating virtual assets," and, "This is no longer a mere experiment; it is now becoming an actual service."

Kang also warned that South Korea, too, must keep pace with the global trend. He said, "If our country does not quickly embrace these changes, users will inevitably migrate offshore for more convenient overseas services," stressing, "If we foster innovative payment companies aimed at global expansion domestically, we can catch up rapidly."