The Lee Jae-myung government's National Policy Planning Committee has revealed that it is considering matters related to stablecoins, which have recently emerged as an economic issue. The industry is creating an atmosphere where not only banks and simple payment companies, but also card companies are jumping into the stablecoin competition.
Jo Seung-rae, spokesperson for the National Policy Planning Committee, held a briefing at the government complex in Changseong-dong and announced that the committee's Economic Sector 1 is contemplating stablecoin-related content. The committee has already involved cryptocurrency experts as advisory and private committee members to discuss related policies. It is known that Kang Hyung-goo, a professor in the Finance Management Department at Hanyang University's Business School, has joined as an advisory member. Professor Kang has previously participated in the Digital Asset Basic Law proposed by the Democratic Party.
During a recent Bank of Korea business report, it was reported that there was a request within the committee for the Bank of Korea to take a more proactive stance on stablecoin introduction. Currently, while the Bank of Korea acknowledges the potential for innovation in stablecoins, it maintains a cautious position that initial issuance rights should be granted primarily to credible financial institutions. This is because stablecoins could pose risks to the financial system if they replace deposits or affect cash flows, potentially neutralizing monetary policy.
However, as the National Policy Planning Committee orders a more aggressive approach to the Bank of Korea, the possibility of private-led stablecoin institutionalization is gaining weight. The Bank of Korea's recent provisional suspension of plans for the second CBDC test is also interpreted as a signal of this change.
The ruling party has stated that it will respect the National Policy Planning Committee's discussion results regarding the institutionalization of stablecoins and other virtual assets. Amid this trend, the financial sector is also accelerating preparations for stablecoin institutionalization. While fintech and platform companies have been preparing for commercialization, the card industry and credit financial sector are also seeking new roles.
According to the financial industry, the Credit Finance Association plans to propose to the National Policy Planning Committee a legal amendment allowing card companies to perform stablecoin-related tasks. This is similar to the previous request by the Korea Federation of Banks to permit banks to enter the stablecoin business through a bank law amendment. The card industry is feeling a sense of crisis, as there is a high possibility that merchants would choose stablecoins over existing card payment networks due to nearly zero transaction fees when a won-based stablecoin is introduced.
Consequently, a perception is spreading across the industry that card companies should proactively introduce stablecoin payment cards. Banks and fintech companies are also visualizing their business entry by filing trademark applications related to stablecoins. As legislative discussions in the National Assembly become more concrete, various alliance strategies are expected to be fully initiated among banks, virtual asset companies, and fintech companies.
