South Korea has witnessed a pivotal development in its cryptocurrency landscape with BDACS introducing the nation’s first won-backed stablecoin, KRW1, built on the Avalanche network. This stablecoin is anchored by won assets stored at Woori Bank in a 1:1 ratio, ensuring high security. The KRW1 initiative is currently undergoing various tests to align with existing legislation.
What is the technological base of KRW1?
BDACS meticulously conducted a feasibility study which validated the technical robustness of KRW1. The company opted for the Avalanche network due to its high security and reliability, ideal for public applications. KRW1 is backed entirely by won assets kept at Woori Bank, further enhancing its stability.
To maintain transparency, real-time API integration with Woori Bank has been introduced to verify reserves. The infrastructure supporting KRW1 includes issuance and management systems. Users can benefit from a mobile app designed for seamless peer-to-peer transactions and verification of transfers.
How is the regulatory environment evolving for stablecoins in South Korea?
Though still at the proof-of-concept stage and not yet available to the public, KRW1 does not breach any current legal guidelines. While discussions on stablecoin regulations continue in South Korea, no specific rules have been enacted.
Lee Jae Myung, the President, has shown support for a steady growth of a stablecoin market tied to Korean currency. On the contrary, the central bank advocates for restricting the issuance of stablecoins to banks that are licensed, promoting financial steadiness.
BDACS, with influential corporate ties, is strategically positioned to lead the stablecoin sector. The cooperation with Woori Bank serves as a substantial advantage, and their stance is to see collaboration opportunities amid entries from major tech players.
– Positive news about KRW1 fueled a spike in the Avalanche network’s primary asset, AVAX, with a 7.82% increase observed in the past 24 hours.
– AVAX’s price soared by 13.22% over the previous week and surpassed 40% growth over 30 days.
BDACS’ latest initiative has injected optimism into the markets, particularly benefiting the Avalanche network and its core asset, AVAX. Such ambitious steps could potentially inspire further development within the cryptocurrency industry in South Korea and beyond.
