- BC Card finalized a stablecoin payment pilot involving foreign users paying local merchants in South Korea.
- The pilot converted stablecoins held in overseas wallets into digital prepaid cards through partnerships with several blockchain and payment providers.
- South Korean regulators and financial entities continue to debate stablecoin regulations, delaying formal rules.
- Stablecoins are gaining traction globally as alternative payment methods, with companies like YouTube and VISA integrating stablecoin services.
In South Korea, BC Card, a leading payments processor, completed a pilot project that allowed foreign users to pay local merchants using stablecoins. The pilot, announced recently, was conducted in collaboration with blockchain firm Wavebridge, wallet provider Aaron group, and cross-border remittance company Global Money Express. Foreign users exchanged their stablecoins held in overseas wallets linked to BC Card into digital prepaid cards for transactions. This initiative is part of a broader plan to establish a stablecoin payment system, responding to evolving stablecoin regulations in South Korea, as outlined here.
BC Card is a major payment operator in South Korea, reportedly handling over 20% of the country’s card transactions and serving 3.4 million merchants. It is majority-owned by KT Corp, one of South Korea’s three largest telecom companies. The project reflects an industry effort amid regulatory developments, with BC Card forming a dedicated team to monitor domestic and international stablecoin trends.
In July, reports indicated South Korean credit card companies formed a joint task force in response to potential competition from stablecoins. The Financial Services Commission (FSC) of South Korea recently missed a deadline to present a stablecoin regulation proposal requested by the ruling Democratic Party. The delay stems from differences between the FSC and the Bank of Korea (BOK), specifically BOK’s proposal requiring banks to hold at least 51% ownership in stablecoin issuers, contrasting with other regulators favoring a more diverse ecosystem, as reported here.
Stablecoins are digital assets designed to maintain a stable value by pegging to fiat currencies, offering an alternative or complement to traditional payments like cards and bank transfers. Their adoption is accelerating globally. For example, YouTube enables U.S. creators to receive payments in the dollar-backed Paypal USD (PYUSD), and Visa has introduced USD Coin (USDC) settlement services to certain U.S. financial institutions. Data indicate increasing stablecoin transaction volumes worldwide (source).
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