Thirteen domestic companies, including Samsung Electronics and Dunamu, have joined a global dollar stablecoin project led by Visa, Mastercard and others. The stablecoin consortium "Open Standard" plans to unveil a dollar coin called "OpenUSD (OUSD)" within the year, with participation from about 140 companies worldwide, including from Korea. With Tether (USDT) and Circle (USDC) controlling about 80% of the dollar coin market, global financial firms and Big Tech companies have formed a consortium to strengthen the dominance of dollar coins. Unlike the existing Tether and Circle, this project offers advantages such as allowing issuance and redemption without fees, and evenly distributing profits generated from reserves among consortium companies.
Korean companies joined the "dollar coin alliance" because dollar coins enable real-time processing of cross-border remittances, product purchases and payment settlements, greatly enhancing transaction convenience. A sense of urgency also played a role, with concerns that falling behind the global trend could mean losing business opportunities amid the explosive growth of the dollar coin market. The market capitalization of dollar coins reached $300 billion (about 400 trillion won) last year, and some analyses even project it will approach $2 trillion by 2028.
Major countries are moving quickly to institutionalize stablecoins in order to seize the market. The "Genius Act," which the United States enacted last year, placed emphasis on financial stability by restricting coin issuers to banks. Japan, which introduced a registration system in 2017, defined stablecoins as an electronic payment method, while the European Union (EU) is systematically regulating everything from issuance licenses to reserve ratios and disclosure obligations by subdividing coin types.
Unlike the swift moves of these major countries, Korea's actions are far too slow. The Basic Digital Asset Act, which defines stablecoins and regulates their issuance and operation, is spinning its wheels amid partisan strife and disagreements between government agencies. The National Assembly, the Financial Services Commission, the Bank of Korea and the Ministry of Economy and Finance should not drag their feet by offering scattered opinions, but rather swiftly prepare legislation to foster won coins through consultation. They could also consider a "two-stage approach" that initially centers issuers on banks and expands to fintech firms and companies once the system takes root. Now is the time for the National Assembly and the government to lock arms and demonstrate strong execution.
