PwC Consulting: "The government must demonstrate the utility of KRW stablecoins through various use cases"

It was suggested that proof-of-use led by the government is necessary for the successful adoption of KRW stablecoins (virtual assets linked to the value of legal tender).

Jeon Woo-young, a partner at PwC Consulting, attended the 'National Assembly Forum for the Legislation of the Digital Asset Innovation Act' held at Meeting Room 6 of the National Assembly Members' Office Building in Yeouido-dong, Seoul, on the 22nd. He stated, "KRW stablecoins can be a solution to the Triffin dilemma, the issue of the US dollar as the key reserve currency." He added, "For stablecoins to become widespread, it is necessary to carry out testbeds and demonstrate use cases through government and inter-ministerial cooperation."

Partner Jeon emphasized the need to refer to overseas stablecoin cases. He explained, "Currently, Tether (USDT) handles the distribution side of the overseas virtual asset (cryptocurrency) market, while JPM Coin is responsible for institutional payment settlement methods." He stated, "Like this, different types of stablecoins can emerge depending on the use case."

Partner Jeon argued that such segmentation indicates a need for coordination within the business field. He pointed out, "With various operators and licenses proliferating, hegemonic struggles could occur even before the activation of stablecoins," adding, "In such a scenario, the market could become fragmented, and this could create problems for ecosystem development."

He further stated, "Of course, the speed of stablecoin adoption is also important," but emphasized, "Before that, the government and financial authorities should step forward to help market participants prepare to utilize stablecoins."