As the influence of stablecoins grows, there are voices in Korea that the won stablecoins are continuously needed.

This is because the "de-Korea" phenomenon of capital can expand beyond internal problems in the virtual asset market to threats to the Korean won's economic sector and financial sovereignty.

As the influence of stablecoins grows, there are voices in Korea that the won stablecoins are continuously needed.

This is because the "de-Korea" phenomenon of capital can expand beyond internal problems in the virtual asset market to threats to the Korean won's economic sector and financial sovereignty.

In particular, in the case of stablecoins, the international remittance speed is much faster than that of traditional banks, and there are no employee labor costs and branch operating costs, so there is a high possibility that capital will be concentrated in the future due to high deposit interest.

The stablecoin tether (USDT) deposit product announced by Kraken, a U.S.-based virtual asset exchange, has an annual interest rate of 5.5%.

All you have to do is deposit the tether to Kraken and deposit it to the related service. You can always get the tether back with interest equal to the deposit period.

Coinbase, another U.S.-based virtual asset exchange, has USDC deposit interest at 4.1% per year. This is significantly higher than the average U.S. bank rate of 2.2%.

In the case of Binance, the world's largest virtual asset exchange, which is frequently used by Koreans, the interest on USDT deposits currently stands at 6.51%.

The reason why such returns are attractive is that they are risk-free returns. Stablecoin is a virtual currency issued at a fixed value on existing currencies such as dollars.

Unlike common virtual assets such as Bitcoin and Ethereum, there is no value change during the remittance process.

Although there is a risk of the exchange going bankrupt because the Depositor Protection Act is not applied, in general, it is actually similar to putting legal currency into a bank.

Stablecoin is much more attractive as it can also play a role as a dollar investment, considering that the annual interest rate on basic deposits of the five major banks in Korea (KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup) is 2.10 to 4.05%.

Stablecoin is a key currency for buying coins from overseas virtual asset exchanges.

Naturally, virtual asset exchanges can pay such deposit interest to customers instead of doing business using customers' stablecoins because the demand for stablecoins, which are used as virtual asset trading pairs or used to move assets, is very high.

The problem is that there are no borders in the virtual asset market. In other words, Koreans can also receive high interest rates if they purchase tethers and USDCs and deposit them on overseas exchanges.

In fact, the transaction value of stablecoins in Korea has recently reached nearly 8 trillion won a month even when the market is sluggish.

According to CryptoQuant on the 6th, stablecoin transactions recorded $5.572.1 billion on the Korean won exchange (Upbit, Bithumb, Coinone, Cobbit, and GoFax) in April.

This is a quarter of the price of stablecoin transactions in Korea compared to December last year ($2054.9 million), which was the highest ever, but it is a 71% increase compared to April last year ($3.24 billion).

Stablecoins are generally not traded for investment because they cannot aim for capital gains.

Most of them are in demand to move assets to overseas exchanges or personal wallets. Despite the sluggish market, the de-Koreanization of capital is steadily occurring through virtual assets.

Some say that the won's stablecoin is urgently needed due to such concerns.

HOR recently published a report on the need for won stablecoins and legalization proposals and analyzed, "Dollar-based stablecoins such as USDT and Circle's USDC are deepening the outflow of virtual asset capital, posing a potential threat to the domestic financial system and the won."

HOR diagnosed that if this trend continues, the won's usability and control will inevitably weaken if it reaches a critical point where the boundaries between virtual assets and the real economy are blurred in the future.

Currently, in the United States and Europe, an environment is being created where people can directly trade with stablecoins through online payment solutions such as Visa, Mastercard, PayPal, Stripe, and Shopify linked to personal smart contracts.

If such a payment solution becomes common in the future, Korea will have no choice but to rely on dollar stablecoins as it is now in the absence of won assets.

HOR suggested that the introduction of won stablecoins is necessary to overcome these problems.

It is explained that won stablecoins can prevent dollar-based stablecoins such as USDT from being linked to fintech, payment, and asset management, thereby strengthening the overall competitiveness of the Korean digital asset market.

In the first quarter of this year, stablecoin trading volume reached $1.5 trillion (about 2,148 trillion won), surpassing Visa's $1.4 trillion (about 2005 trillion won).