Payment card giant BC Card, which processes over 20% of South Korean card transactions, has completed a project allowing foreigners to pay with stablecoins at 3.4 million acceptance points.
One of South Korea's largest payment companies has just completed a significant step in integrating stablecoins into its traditional payment system. BC Card, which processes over 20% of card transactions in South Korea and has a network of 3.4 million payment acceptance points nationwide, announced the successful launch of a pilot program allowing overseas users to pay with stablecoins at local stores.
According to an announcement on Tuesday, the project is being implemented in collaboration with blockchain company Wavebridge, wallet provider Aaron Group, and cross-border money transfer provider Global Money Express. The process allows overseas users to convert stablecoins from overseas wallets partnered with BC Card into digital prepaid cards, which can then be used for payments at domestic payment acceptance points.
BC Card emphasized that this trial is not a short-term project, but part of the preparation for the long-term deployment of a stablecoin payment structure. The company stated that this move is a response to the evolution of stablecoin regulations in South Korea, demonstrating a strategic vision for early positioning in the digital asset payment market.
Shehram Khattak, legal counsel at Trust Wallet, commented: “Ultimately, banks will have to address legacy practices, but not just from an operational perspective, but also in terms of processes; entire departments will have to change how they operate.” This reflects the transformation pressures facing traditional financial institutions as blockchain technology and stablecoins become increasingly prevalent.
The debate over regulating stablecoins is causing controversy.
In late July, South Korean credit card companies reportedly formed a joint working group to address the potential threat from stablecoins, as regulators opened discussions on introducing stablecoins Peg to the won. BC Card is known to have established an internal team dedicated to monitoring domestic and international stablecoin market trends, demonstrating a proactive approach to adapting to change.
However, progress in establishing stablecoin regulations in South Korea is slower than expected. Earlier this month, the Financial Services Commission (FSC) failed to submit its draft proposal on time as requested by the ruling Democratic Party. Lawmakers said the delay stemmed from disagreements between the FSC and the Bank of Korea.
The central point of debate appears to be the BOK's proposal requiring banks to own a minimum of 51% of any stablecoin issuer seeking approval. Meanwhile, other regulators seem to be pushing for a more diversified ecosystem, open to more participants than just traditional banks.
Global trends show that stablecoins are increasingly being discussed as an alternative or complementary payment method to traditional solutions. YouTube allowed US content creators to receive payments via PayPal USD in early December, while Visa rolled out USD Coin settlement services to some US-based financial institutions. BC Card's move suggests that South Korea is not willing to miss out on this wave of conversion, even though the legal framework is still in the process of being finalized.
