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Stablecoins Rise, Cards Fall: Experts See Big Tech Gaining In South Korea
- South Korea is close to establishing stablecoin regulations that could impact payment methods.
- The proposed Digital Asset Innovation Act would require stablecoin issuers to hold at least ₩1 billion in equity capital.
- Only big players or well-funded firms will likely meet the capital requirements, potentially excluding small startups.
- Democratic Party members in the National Assembly are set to unveil the bill soon to provide clear guidelines for stablecoins.
- Experts warn stablecoins could challenge credit card payments, posing a threat to the industry's stability.
- Card companies are already facing challenges with a rising loan default rate, nearing the 2% danger mark.
- The Bank of Korea is cautious about stablecoins, fearing they might impact the banking sector's profits and deposits.
- Tech giants like Naver and Kakao are gearing up for the stablecoin market, aiming to integrate won-backed tokens into their platforms.
- Companies like Hyundai HT, Hyundai Mobis, Kocom, and others are also monitoring the stablecoin space for potential opportunities.
- Investors are showing interest in companies linked to stablecoins, leading to speculation in both crypto and stock markets.
- There is enthusiasm in the market, but risks are present if the stablecoin legislation faces delays or changes.
- The article also features an image from Unsplash and a chart from TradingView.
- Overall, the move towards regulating stablecoins in South Korea could have significant implications for the financial industry.
- Experts predict that big tech companies might benefit the most from the stablecoin regulations in South Korea.
- Investors are actively involved in the speculation around stablecoins, impacting stock and crypto markets.
- It remains to be seen how the stablecoin regulations will unfold and the effect they will have on various sectors in South Korea.
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