KakaoBank to Launch KRW Stablecoin by 2025 Amid South Korea Policy Shift

KakaoBank, South Korea’s largest digital bank, has announced plans to launch a KRW-backed stablecoin by 2025, signaling a strategic shift in alignment with evolving government policies. The initiative reflects a broader pivot in South Korean monetary strategy, moving away from central bank digital currency (CBDC) development toward private-sector-driven digital finance solutions. This development is anticipated to reshape the domestic payments landscape and potentially influence regulatory frameworks [1].

The stablecoin initiative is backed by KakaoBank’s experience in digital finance, including its prior participation in CBDC pilot programs. CFO Kwon Tae-hoon emphasized the bank’s commitment to robust risk management protocols, earned through three years of collaboration with crypto exchanges. “Our focus on stablecoins will be supported by robust digital asset risk management protocols earned from partnering with crypto exchanges over the past three years,” he stated [1].

Government support under President Lee Jae-myung’s administration is seen as a key enabler of this transition. Legislative momentum favoring stablecoin-backed digital economies suggests a regulatory environment conducive to innovation. Unlike traditional CBDC models, the shift to stablecoins allows for greater flexibility in digital payments and financial services, with KakaoBank poised to leverage its existing infrastructure to drive adoption [1].

The bank’s digital platform is expected to attract over 1 million new users in the first half of 2025, potentially expanding the base of KRW stablecoin users. While the stablecoin is still in the planning phase, analysts note that KakaoBank’s established digital infrastructure positions it as a leader in shaping the future of South Korea’s digital economy. The initiative is not expected to directly impact broader cryptocurrency markets such as BTC or ETH, but it could drive increased adoption of digital assets across the country [1].

With a focus on local stability and digital innovation, KakaoBank’s KRW-backed stablecoin aims to support a thriving private-sector-driven digital payments ecosystem. Similar to developments seen with stablecoins like USDC, the project could set a precedent for future regulatory and market shifts in South Korea’s financial landscape [1].

Source: [1] [KakaoBank Initiates KRW Stablecoin Amid Government Policy Shift](https://coinmarketcap.com/community/articles/689463e1b84edf711c3cad32/)