"Stablecoins: Transforming Local Currencies into Digital Assets" [Decenter Interview]

Stablecoins have been presented as a key to expanding the local currency ecosystem. The explanation is that linking with stablecoins could transform local currencies beyond mere payment methods into digital assets capable of investment and asset management.

Kim Sang-min (pictured), CEO of the Busan Digital Asset Exchange, said on the 22nd, "The biggest significance of the legalization of stablecoins is that local currencies will expand into digital assets that can be invested in, saved in, and remitted."



Since May, the Busan Digital Asset Exchange has been developing a digital asset wallet, "Silk Pouch," in collaboration with Naver Financial and Hashed. The wallet, based on the Dongbaekjeon, Busan's local currency, will support easy exchange between Korean Won stablecoins and fiat currencies, and is scheduled for official launch next year.

CEO Kim said, "We are planning to enable stablecoins to be stored, transferred, and used for payments directly from the wallet, or to invest in real assets (RWA) and local communities." He added, "We will connect the daily lives of 3.3 million Busan citizens with a single wallet by incorporating public service functions such as administration and transportation."

Naver Financial is responsible for building an ecosystem to increase wallet usability. Combining Naver Pay's nationwide stablecoin payment and distribution network with Upbit, Korea's largest cryptocurrency exchange, which is slated for a merger next year, is expected to create a fully-fledged stablecoin ecosystem for real-world use.

CEO Kim said, "The combination of Naver Financial and Dunamu will create a major turning point not only in the domestic but also in the global digital finance market," and "Silk Pouch will play a role in making the technological platform combination of the two companies tangible in real life."

In addition to developing Silk Pouch, the Busan Digital Asset Exchange also operates "Bidan," an RWA exchange established last year. RWA is a digital asset that digitizes real-world assets using blockchain technology, enabling 24-hour, small-amount trading. Bidan currently supports RWA trading of seven precious metals, including gold, silver, and copper. As of the end of October, cumulative trading volume surpassed KRW 400 billion, increasing the likelihood of achieving profitability this year.

CEO Kim stated, "Stablecoins are considered the most crucial link in expanding the RWA transaction ecosystem. We are planning to tokenize gold and link it to a stablecoin-based payment and settlement structure." He added, "This gold token will enable real-time payments, cross-border transactions, and small-scale investments, thereby attracting foreign investors to the domestic RWA market."

Reporter Kim Jeong-woo