Kakao is developing a Korean won (KRW) stablecoin on the Kaia blockchain, following recent trademark registrations for KRW-related names. The initiative seeks to enhance payment speeds, remittances, and blockchain settlements, catering to over 49 million monthly users in its ecosystem. However, the project faces uncertainty due to ongoing discussions about stablecoin regulations in South Korea. Leaders from both ruling and opposition parties have introduced competing bills, addressing issues such as interest payments on stablecoins and reserve requirements. The future of KRW stablecoins is also influenced by South Korea's capital controls, affecting potential cross-border applications. The Bank of Korea is evaluating initial stablecoin issuance, with a focus on bank-issued options and deposit tokens on public chains. Kakao is poised to lead in the stablecoin arena, but final rules are pending, necessitating further clarity on licensing and operational frameworks.

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