Editor's PiCK
Countdown to KRW Stablecoin… Card Industry Discusses Joint Response
Summary
- The card industry has stated that it has agreed to mount a joint response to the introduction of KRW stablecoin.
- Card companies have announced that they are discussing whether to add stablecoin-related business to their ancillary and concurrent business categories.
- There are predictions that if stablecoin payments become widespread, credit card companies' competitiveness may weaken.
The card industry has decided to respond jointly to discussions on the introduction of a KRW stablecoin.
According to the financial sector on the 4th, the Credit Finance Association and eight specialized credit card companies will form a stablecoin task force (TF) next week and hold their first meeting. The TF plans to primarily discuss how credit card companies should respond to the legislation of stablecoins and what roles they can play in the associated ecosystem.
Through these TF discussions, the card companies plan to propose to the government that credit card companies should be allowed to participate in the operating and transaction processes of stablecoins. Currently, credit card companies can only engage in business specified under the Specialized Credit Finance Business Act, but an option under discussion is to add stablecoin-related business to the categories of ancillary or concurrent business.
There is speculation that if stablecoin payments become widespread, bypassing card companies or payment gateways (PG), credit card companies may lose their competitive edge.
Jeong Eui-jin Reporter justjin@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
