Countries around the world are in different stages of evaluation or establishment of centralized digital currencies in the bank (CBDCs).
In the Crypto newsletter now for counselors, we look east, as Dr Sangmin Seo.
Then, then, Patrick Murphy From eight answers questions about how these changes affect investors to ask an expert.
What are the techniques of South Korea and Japan toward Stablecoins
After the passage of the Genius Act in the US, Stablecoin projects, implementation and regulation are a major topic of discussion worldwide. South Korea and Japan both have high levels and advanced discussions currently about how those stablecoins should work. And how the private sector and government should interact with regulating stablecoins.
The central banks in Korea and Japan differ in their techniques towards Stablecoins and CBDCs:
- A CBDC, or a central controlled digital currency, is a blockchain powered by digital currency controlled by a central bank peg in a real-world currency denomination.
- A stablecoin Ay usually issued by private businesses. They are usually designed to have a value that is identical to real-world currencies.
Japan: CBDCs can be aware of Stablecoins
The Bank of Japan maintains a stable bearing that CBDCs should only be used for interbank organizations. Private banks released stablecoins can be used for business-to-business (B2B) and business-to-consumer (B2C) Transactions. The Bank of Japan and the Financial Services Agency have created a Stablecoin regulation framework with a positive stance on the use of private regulated stablecoins.
While the Bank of Japan recognizes the “The potential of stablecoins as a great payment method,“It also thought of co-having CBDCs and viewed digital yen as a complement, rather than competitive, cash form, with traditional finances.
Bank of Japan Governor Kazuo Ueda, recently said, “Stablecoins adds small international remittances, leading to risk of risk. With higher frequency micropayment, it will be interesting to explore how CBDCs can play an assured role.” It suggests that private stablecoins can provide studies for a CBDC design in terms of efficiency in its payment.
South Korea: Ambivalence but leaning toward private stablecoins
This is in contrast to the current ambivalent of the Bank of Korea if the central banks of the Central Banks should be controlled, considering that they may cause an instability in the value of domestic currency or capital flights. It is important to understand that Korea has tight capital controls in the currency system.
However, South Korea’s National Assembly led Pro-Stablecoin discussions by suggesting three different digital asset bills to legalize KRW Stablecoins. These bills came after President Jae Myung Lee promised to create domestic stablecoins in the previous election campaign that successfully graduated in June. It is noteworthy that the Korean CBDC project stopped on June 29, 2025, following the discussions of this stablecoin.
Photo: Kaia
As a result, many competing consortia from Web3, Fintech, and banks are all scrambling for a position to be part of any stablecoin designs. Kakao and Naver, the largest IT business in South Korea, began their Stablecoin research task forces, filed trademarks, or formed a group of alliance looking for potential partners.
The Circle, the USDC provided, signed a MOU with the Hana Bank, one of Korean’s major banks, to place the basis for a future Stablecoin Business Alliance. Private banks of South Korea have begun positioning themselves as Stablecoin businesses; The CBDC project was frozen in June.
However, South Korea has maintained a “a bank for a centralized crypto exchange regulation”, which blocks new entering markets. Therefore, many in the industry are diligently waiting to see which of the three bills are adopted.
Why are the techniques in Japan and South Korea important for non-USD stablecoins
Instead of benefiting South Korea’s economy, the Korean bank and others argue that a Korean-won (KRW) Backed Stablecoin will not avoid flights from South Korea, as these stablecoins are not widely used in global digital transactions such as USD stablecoins.
Despite these statements, the private sector may have a well -known role in creating a South Korea Stablecoin, especially as South Korea has the second largest retail crypto market.
Communicating between the private sector and governments regulating stablecoins, as well as how South Korea and Japan address these issues, especially in mass balancing masses of stablecoins with compliance with web3 principles, have implications beyond their boundaries.
– Dr Sangmin Seo, Chairman, Kaia DLT Foundation
Ask an expert
Q: What is the driving transition to Asia to combine blockchain technology with traditional financial systems?
A: Asian Blockchain’s embrace is a strategic pivot, which is moving beyond its conceptual aspects of cryptocurrency in its potential as a foundation technology. Policy leaders throughout the region see that regulatory clarity is essential for sustainable change; Examples such as Hong Kong licensing regime for virtual asset service providers (Vasps) And the regulated Defi and Cross -Border Singapore pilots show this action. This proactive approach creates the clarity of regulation and stable infrastructure required to facilitate safe on-chain transactions and better cross-border payment, which ultimately modernize financial systems.
Q: The new South Korean regulation framework is a significant development. What are the key features, and what are their signal for institutional adoption?
A: South Korea’s new plot, formally in the Digital Asset Basic Act (Following)represents a major step toward institutional reception. Its key features, including comprehensive guidelines for stablecoins and the introduction of funds exchanged by Crypto Exchange (ETFS)is designed to create a safer and defined environment for digital possessions. In addition, the launch of a state-supported blockchain support emphasized a strategic focus on developing grade-institutional infrastructure. These developments collectively sign that South Korea views digital assets not only as a retail product, but as a legitimate part of the financial ecosystem, which puts ways for the institutional participation.
Q: What are the main takeaways for financial counselors from the emerging Asian blockchain, and what should they monitor?
A: Developments in Asia, especially in countries such as South Korea, provide a clear roadmap for the future of global finance. Counselors should acknowledge that this trend indicates the transition towards the institutional reception and the potential for new, regulated financial products. It is important to monitor the development of tokenized securities, which can change the introduction of how the property is issued, exchanged, and efficient. In addition, keeping up with new stablecoin and digital regulations knowing your customer (KYC) Frameworks are important, as these trends can be a preview of the next evolution of capital markets around the world.
– Patrick Murphy, Chief Commercial Officer, EighCap
