As the National Assembly debates a Digital Asset Framework Act, interest in whether and how to introduce a won-denominated stablecoin is running hot.
In a recent interview with Edaily, PARAMETA CEO JH Kim laid out a vision that sounds like a paradox but is perfectly clear: the less the Korean won (KRW) is used internationally, the more reason there is to create new opportunities for it through a stablecoin.
Here is a summary of why Kim believes a won stablecoin is needed, what it could actually be used for, and what has to happen for it to be properly regulated.
1. Why a won stablecoin? A rediscovery of use cases
Some are skeptical: if there is little demand for the won overseas, who would ever use a won-based stablecoin? Kim sees it the other way around.
"We should introduce a won stablecoin precisely to find uses in the places where the won is barely used today."
Blockchain technology can open new liquidity channels exactly where the conventional financial network makes the won hard to use.
B2B cross-border payments: For cross-border credit card settlement or content-trade payments, a won stablecoin could settle transactions quickly and cheaply — all it takes is liquidity.
RWA (real-world asset) trading: When domestic assets such as Korean equities or real estate are tokenized and traded abroad, a won stablecoin makes an excellent means of settlement.
2. Synergy with local currencies: K-local finance that foreigners can actually use
Kim also suggested that a won stablecoin could dramatically improve the efficiency of Korea's local-currency systems.
- Global compatibility: Foreign visitors holding dollar stablecoins (USDC, USDT and the like) could swap them for a won stablecoin and spend it immediately at local-currency merchants in Korea.
- Lower operating costs: Moving from a structure that depends on credit card networks to a blockchain-based one could cut settlement and payment costs to a tenth of what they are now.
Transparent administration: Replacing hard-to-police welfare voucher systems — think of the misuse seen with U.S. food stamps (meal coupons) — with stablecoins makes fund disbursement transparent and traceable. That is also an opportunity to export the system itself overseas.
3. A technical answer to anti-money-laundering concerns
To the worry that stablecoins are vulnerable to money laundering because of their anonymity, PARAMETA's response is that technical controls are entirely feasible.
Smart KYC (know your customer): Apply KYC at the wallet level, and any problem wallet can be frozen or restricted from transacting immediately.
Programmable money: Just as with security tokens based on Tesla stock, user ID information can be bound to the token itself, making its movement fully traceable and controllable. In other words, it can be managed far more robustly and safely than cash.
4. In legislation, the question is not "who" but "how"
Finally, Kim pointed out that the current debate in the National Assembly stops at issuer eligibility and ownership restrictions, and stressed that concrete technical requirements are urgently needed.
Mainnet evaluation criteria: verifying the stability of the blockchain network the stablecoin will run on
Custody and security: countermeasures against hacking, and guidelines for asset custody
Compensation and technical cooperation: policy judgment from the Financial Services Commission (FSC) working together with technical verification from the Ministry of Science and ICT (MSIT)
This interview goes beyond the simple question of whether to adopt stablecoins at all. It shows what kind of innovation becomes possible when digital asset technology meets the real economy.
The task is to find the opportunities the won cannot capture on its own — but a stablecoin can.