BDACS and Woori Bank Launch KRW1 – Won-Pegged Stablecoin, Paving the Way for the Digital Economy Era in Korea.
As the world is witnessing a wave of stablecoin applications in traditional finance, Korea has just made a strategic move when BDACS cooperated with Woori Bank to introduce KRW1, a stablecoin fully backed by won. This is considered one of the pioneering projects to help narrow the gap between the banking system and modern blockchain technology.
After successfully completing the Proof of Concept (PoC) testing, KRW1 is now entering the real-world testing phase. Each KRW1 is backed 1:1 with won deposited at Woori Bank. Thanks to the API system, users and institutions can check reserves in real time, ensuring transparency and strengthening trust in this new stablecoin.
Not only does it Vai as a means of transaction in the cryptocurrency market, KRW1 is also oriented towards public services. A typical example is the support for the distribution of emergency relief or financial assistance to people with low transaction costs, quickly and safely. This is a model that many countries, especially the US under President Donald Trump after the 2024 election victory, are also interested in to improve the mechanism of distributing subsidies and social support.
In terms of technology, the KRW1 project chose to build on the Avalanche platform, a blockchain known for its high processing speed, strong scalability and high security. This allows KRW1 to not only serve the needs of regular transactions but also to seamlessly connect banks, financial institutions and individual users.
