Key Takeaways
- Under the pilot, foreign users holding stablecoins in wallets partnered with BC Card were able to convert those assets into digital prepaid cards
- BC Card has also formed a dedicated team to monitor developments in both domestic and global stablecoin markets.
South Korean payments giant BC Card has moved a step closer to integrating stablecoins into everyday commerce, completing a pilot that allowed overseas visitors to pay Korean merchants using digital assets.
The trial, announced on Tuesday, involved blockchain firm Wavebridge, wallet provider Aaron Group and remittance company Global Money Express. Under the pilot, foreign users holding stablecoins in wallets partnered with BC Card were able to convert those assets into digital prepaid cards, which could then be used at local stores.
BC Card said the experiment was not designed as a one-off test but as groundwork for a broader stablecoin-based payment system.
The development assumes significance as the payment processor plays a central role in the country’s retail economy. The firm handles over one-fifth of all card transactions nationwide and connects roughly 3.4 million domestic merchants, reflecting its widespread reach. It is majority owned by KT Corp, one of South Korea’s three major telecommunications operators.
The pilot comes as traditional card companies grow increasingly alert to the potential disruption posed by stablecoins. In late July, local media reported that credit card firms had set up a joint task force after regulators began discussing the possibility of won-denominated stablecoins.
BC Card chairman Choi Won-seok has previously described stablecoins as a technology capable of reshaping payment infrastructure. When the company filed patents related to stablecoin-based payments in September, Choi said BC Card intended to help create an environment where such payments could be used seamlessly. Between 2022 and 2024, Choi personally filed multiple patents tied to blockchain payment technologies, including systems connected to non-fungible tokens.
Internally, BC Card has also formed a dedicated team to monitor developments in both domestic and global stablecoin markets. However, the regulatory landscape in South Korea remains unsettled and dodgy. Earlier this month, the Financial Services Commission (FSC) missed a deadline set by the ruling Democratic Party to submit a draft framework for stablecoin regulation.
Lawmakers have attributed the delay to differences between the FSC and the Bank of Korea. At the center of the disagreement is whether banks should be required to hold a controlling stake — at least 51% — in any stablecoin issuer seeking approval. While the central bank has pushed for a bank-led model, other regulators have signalled support for a more open ecosystem.
