”Stablecoins” attracting attention in presidential election... Gaining interest as a new investment option in the era of low interest rates = Korean media

With the presidential election taking place on June 3, stablecoins, which have a fixed value that is equal to one-to-one with existing currencies, are a hot topic of discussion in the economic field.
The government is swiftly working to establish relevant legal foundations, such as the Basic Act on Stablecoins. City banks are also actively expanding their stablecoin-related organizations and human resources.
If tablecoins are actually introduced, there is interest in whether they will become a new investment option in this era of low interest rates, replacing savings and savings accounts that only offer interest rates of 1% to 2%.
According to the financial and cryptocurrency industries, overseas stablecoin-related companies are offering high interest compensation to attract coin users.
Binance, a cryptocurrency exchange, offers a "staking" service that compensates users with an interest rate of 4% to 6% per year when they purchase stablecoins. PayPal also offers its own stablecoin.
The company plans to introduce a new program that will provide a 3.7% annual compensation for the table coin "PayPal USD." An industry source said, "In the United States and other countries, related companies are
"We are offering compensation at a level far higher than bank deposit interest rates in order to revitalize the industry and expand our market share," the company said.
If a Korean won stablecoin is introduced, compensation similar to overseas cases will be provided
It is expected that the concept of "staking" will be offered. In fact, under the initiative of the Bank of Korea, KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Enterprise, BNK Busan, etc.
The "Project Hangang," which has been running since April and involves seven banks and 100,000 ordinary citizens, offers compensation in the form of discounts.
The system links the local currency with city bank deposit tokens, and offers a 10% discount when paying with deposit tokens at Seven-Eleven and other convenience stores.
However, there are hurdles that must be overcome in order for stablecoins to become an investment option beyond bank deposits and savings.
Some have pointed out that there are many hurdles to overcome, such as ensuring legal safety including depositor protection, the risk of hacking, and the stability of the issuing company, all of which have yet to be resolved in a situation where the relevant laws have not even been finalized.
A bank official said, "Assuming that the rate of return on U.S. Treasury bonds is 4% to 5% per year, staking secured by U.S. Treasury bonds can return a portion of the interest earned from these bonds to users."
"Under South Korean domestic law, only banks can offer interest, so whether or not the law is passed in the direction of providing interest could have an impact on banks' profits and losses."
Another bank official said, "Banks can only return interest if they issue stable coins and make profits from the deposits they receive through other investments.
"It will be possible," he said, adding, "Ultimately, it will depend on what the financial authorities and laws decide, but nothing concrete has been done so it is difficult to predict."