The Card Industry Responds with a Task Force Amid Concerns Over the Spread of KRW Stablecoins

As discussions on the introduction of KRW-based stablecoins become more serious, the card industry, which feels its leadership in the payments market is threatened, has launched an urgent response.

According to the financial sector on the 24th, the Korea Credit Finance Association and the eight major standalone card companies plan to launch a 'Stablecoin Response Task Force (TF)' and hold its first meeting next week.

There is a prevailing analysis that if stablecoin payments become widespread, consumers will be able to transact directly with merchants without card companies or PG companies, which could undermine the profitability and market position of the card industry. Thus, this TF is expected to focus on exploring card company response strategies and future roles in the ecosystem following the institutionalization of stablecoins.

Card companies also plan to propose to financial authorities that card companies be included in stablecoin operational transactions through the TF discussions. Meanwhile, card companies have also been accelerating their preemptive responses, such as filing related trademark applications recently.