Latest news with #NaverPay
Yahoo
5 days ago
- Business
- Yahoo
Asia Morning Briefing: Korea's 'Onshore' Won Policy Could Hinder Its Stablecoin Ambition
Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Korea's decision to shelve its central bank digital currency pilot in favor of private-sector stablecoins has sparked a wave of activities among fintechs and banks. As CoinDesk previously reported, KakaoBank is weighing both issuance and custody roles, while Upbit and Naver Pay are collaborating on a payments-focused token that could help close the 'kimchi premium' gap between local and global crypto prices. The opportunity comes as Korea is moving to extend FX trading hours, allow more foreign participation in its onshore market, and position itself for inclusion in major global bond and equity indices. A regulated KRW stablecoin could fit into these modernization plans, offering faster settlement and tighter integration between banking and digital asset markets. But any Won stablecoin effort is going to run into a massive wall: Korea's currency is not fully internationalized. Since the Asian Financial Crisis of 1997, Korea has kept deliverable KRW trading entirely onshore. Foreign institutions cannot exchange won among themselves abroad, and every dollar–won transaction must be settled through domestic intermediaries under the Bank of Korea's supervision. Authorities in Seoul maintain this system to monitor speculative flows, contain volatility, and preserve monetary policy autonomy. So for a Won stablecoin to work, it would have to be only used with whitelisted, KYC-verified addresses that have some tie to Korea. If a privately issued stablecoin becomes too dominant, it can erode a country's control over its currency, encourage 'unintended dollarisation,' and weaken the central bank's ability to manage employment and price stability, Vera Yuen, a professor at Hong Kong University's business school told CoinDesk in a note. The question is, just how useful would this on-shore only stablecoin then be? Domestic interbank transfers in Korea settle around the clock, 365 days a year. Sending money from one account to another is immediate, free, and widely used, leaving little payment friction for a KRW stablecoin to solve inside the country. Without a speed or cost advantage in domestic transfers, the token's primary utility would lie in cross-border settlement — and that is precisely where the onshore-only rule becomes a brick wall. Taiwan faces a similar dilemma. The island's central bank does not impose capital controls on the economy—the Taiwan dollar (NTD) is freely convertible—but it also can't be used offshore, making it of questionable utility as a stablecoin. An NTD-pegged token would be bound by Taiwan's stablecoin framework issued in June, which requires local bank issuance, 100% onshore reserves, and central bank oversight with foreign exchange reporting, which are designed to stop it from becoming an unregulated channel for moving NTD value abroad. One day, a Won, and NTD, stablecoin may emerge, but its utility will likely be confined largely to domestic use rather than the global crypto market, so it'll play a very niche role. It'd be a different story for a Hong Kong Dollar stablecoin as the currency, which is pegged to the U.S. dollar, has no restrictions on being used abroad. Right now, it's wait a wait-and-see mode to determine how much demand there is for non-USD stablecoins and what role they will play in the broader crypto economy. Market Movers BTC: BTC is trading at 123,901.58, supported by broader market momentum as the S&P 500 and Nasdaq hover near record highs on softer inflation signals and speculation of Fed easing. ETH: ETH is getting ready to challenge its all-time high, trading above $4700. Gold: Gold rose 0.3% to $3,356.98 as mild U.S. inflation data boosted expectations for a Fed rate cut next month and increased the odds of further easing this year. Nikkei 225: Asia-Pacific markets opened mixed Thursday, with Japan's Nikkei 225 down 0.31% after hitting a record high in the prior session. S&P 500: U.S. stocks climbed Wednesday, with the S&P 500 and Nasdaq hitting new records as steady inflation data fueled expectations for two Fed rate cuts this year. Elsewhere in Crypto: Google's app store is banning unregistered non-custodial crypto wallets (The Block) Ethereum Wallet MetaMask Will Likely Unveil Its Own Stablecoin this Week (CoinDesk) How Binance's Yi He became 'the most powerful woman in crypto'—and steered the company past its biggest ordeal (Fortune)
Yahoo
01-07-2025
- Business
- Yahoo
South Korean Exchange Upbit to Work on Won Stablecoin With Naver Pay: Report
South Korean cryptocurrency exchange Upbit is working with payments company Naver Pay to promote a won (KRW) stablecoin initiative, KBS reported, citing an unidentified official from Dunamu, Upbit's parent company. The two companies are pursing a payments business based on the stablecoin, the official said, although details remain sparse. A stablecoin is a crypto token whose value is pegged to a real-life asset such as the dollar or gold. "We will specify the scope and methods of cooperation as soon as the relevant system is established," the official told KBS. Korea's crypto-friendly president, elected at the beginning of June, has said he supports a "won-based stablecoin market," a stance that earlier this week spurred the Bank of Korea to halt plans to roll out a central bank digital currency (CBDC). A KRW stablecoin is likely to be an important event for local crypto traders, who have grappled with restrictions around moving KRW in and out of the country. That's led to a large spread and arbitrage opportunities, the trade that pocketed FTX founder Sam Bankman Fried his first notable wealth. The spread between South Korean and U.S. exchanges has often been labeled as the "kimchi premium." The roll out of a KRW stablecoin, as long as it is tradable on-chain, would mean that traders can simply swap that stablecoin for USDT or USDC, bypassing fiat restrictions in the region and essentially ironing out any significant spreads in price. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Post
01-07-2025
- Business
- Arabian Post
Naver Pay and Upbit Unite on KRW Stablecoin Payments
Naver Pay is spearheading an initiative to introduce a South Korean won–pegged stablecoin, with Dunamu—the operator behind Upbit—providing technical and operational support, launching a bold push into blockchain-based payments. The payment platform officially disclosed its intent to enter the won stablecoin space on 26 June. Today, Dunamu confirmed its support for the project, emphasising that Naver Pay will lead, while Dunamu ensures robust backend assistance. Detailed structures and issuance responsibilities remain under review pending regulatory approval. Stablecoins, digital tokens pegged 1:1 to the Korean won, promise minimal price volatility. Such stability makes them suited for everyday transactions and value storage. Naver Pay aims to cultivate an ecosystem that includes a consortium of financial institutions, tech partners, and regulatory consultation to ensure comprehensive infrastructure, covering issuance, redemption, reserves, wallet services, custody, and integration with existing payment rails. ADVERTISEMENT This partnership coincides with broader momentum in the stablecoin arena. Eight major South Korean banks are collaborating through a joint venture to issue their own won-pegged token, targeting a launch by late 2025 or early 2026, contingent on regulatory clarity. Simultaneously, the Financial Supervisory Service supports these initiatives, signalling growing institutional endorsement. On the legislative front, the National Assembly is considering the Framework Act on Digital Assets, which outlines provisions specific to KRW stablecoins. This follows advocacy within the Democratic Party for formal recognition of stablecoins as legitimate mediums of payment, underscoring their strategic importance in national finance. Regulators like the Bank of Korea maintain a cautious stance toward non-bank stablecoin issuers, particularly fintech firms, reflecting concerns over financial stability and reserve transparency. At present, the central bank continues to advance its own CBDC project, but no formal decision has been made to integrate these private-sector stablecoins into national payment systems. Naver Pay's scale positions the platform as a potential game‑changer. With access to Naver's vast user base—spanning search, e‑commerce, messaging, webtoons and fintech—the stablecoin could gain rapid consumer acceptance. Meanwhile, Dunamu brings its deep expertise in digital asset technology and compliance, as evidenced by Upbit's leading position in South Korea's exchange market. International regulators are also focusing on stablecoin frameworks. In the US, the Senate passed the Genius Act on 17 June, indicating growing legislative momentum. Against this backdrop, South Korea's regulators are keen to streamline stablecoin governance, striking a balance between innovation and consumer protection.
Korea Herald
08-06-2025
- Business
- Korea Herald
Naver Pay's overseas QR payments soar amid travel boom
Internet giant Naver's payment platform Naver Pay said Sunday its overseas QR payment service is experiencing explosive growth as more Korean travelers opt for digital wallets abroad. The transaction volume for its overseas QR payment service surged by 70.7 percent in the first quarter compared to the previous quarter, the platform operator said. The spike is largely driven by a sharp increase in Korean tourists using the service in Japan, China and Thailand, the operator added. The number of new overseas users rose by 67 percent on-quarter, signaling a shift in consumer behavior as contactless payments become a norm among young travelers. Naver Pay's integration with PayPay, Japan's leading QR payment network, expanded the number of affiliated merchants by nearly 3 million, significantly boosting usage. Popular retail chains like Don Quijote and Sugi Pharmacy saw sustained increases in Naver Pay transactions. In China, Naver Pay remains the only Korean mobile wallet partnered with all three major local platforms — WeChat Pay, UnionPay and Alipay Plus — enabling seamless usage across most of the mainland. In May alone, transaction volume in China rose 40 percent compared to April. Notably, the number of users in their 20s more than doubled, with high activity concentrated in youth-frequented destinations such as Shanghai Disneyland, Darunfa Mart and Sunrise Duty-Free. Thailand also showed a strong performance, with QR payment volumes increasing 26 percent in May from April, especially in major tourist hotspots. Currently, Naver Pay supports QR payment in 65 countries and regions, the most extensive overseas coverage among all Korean digital payment platforms.
Korea Herald
02-06-2025
- Business
- Korea Herald
Samsung Pay suffers 3-hour outage during Monday rush hour
Samsung Pay, the most widely used mobile payment system in Korea, experienced a widespread outage that lasted over three hours on Monday morning, leaving users unable to make payments during peak commuting hours. According to Samsung Electronics, the service disruption began around 7 a.m. and continued into the late morning, with users reporting intermittent failures when attempting to make payments using the app. However, transportation cards registered within Samsung Pay that utilize near-field communication remained functional. Other digital payment services linked to Samsung Pay, such as Naver Pay X Samsung Pay, continued to operate normally -- prompting industry watchers to suspect a server issue within Samsung Wallet. This key platform underpins Samsung Pay's infrastructure. 'The issue appears to be sporadic, affecting only some users,' a Samsung Electronics official said. 'We are currently identifying the cause and working to restore full functionality as soon as possible.' In a notice issued by Samsung Wallet's operations team, the company confirmed the error, stating: 'We are aware of an issue affecting card payments and are working to resolve it swiftly.' Launched in Korea in August 2015, Samsung Pay has grown into the country's most widely used mobile payment service. As of March last year, the platform had surpassed 17 million domestic subscribers and recorded over 300 trillion won ($217.6 billion) in accumulated transaction volume. Frustrated users took to social media to voice their concerns. "Couldn't pay for my coffee this morning because Samsung Pay was down," one post read. Others warned, "If you're using Samsung Pay, don't forget to carry your physical card," and "Customers left the store without paying." At around 10:22 a.m., Samsung issued an additional notice stating that the issue causing errors during card payment and registration had been resolved. The company added, "Service is now operating normally," and apologized for any inconvenience caused. This marks the second recent incident for the service. On May 16, Samsung Pay experienced a brief disruption due to a network equipment failure, though that issue was resolved within three minutes.
