'Bank-led won stablecoins risk limiting innovation'

What happened: At a Seoul roundtable, global industry executives said South Korea's proposed bank-led model for won-backed stablecoins may give banks little incentive to build new payment infrastructure. Why it matters: Executives questioned banks' incentives, citing tokenized deposits as a rational alternative, and warned that applying conventional capital controls to blockchain payments could negate the technology's efficiencies.

At a Seoul roundtable, global industry executives said South Korea's proposed bank-led model for won-backed stablecoins may give banks little incentive to build new payment infrastructure.

Executives questioned banks' incentives, citing tokenized deposits as a rational alternative, and warned that applying conventional capital controls to blockchain payments could negate the technology's efficiencies.