South Korean Budget Office Estimates KRW Stablecoins Could Save Merchants $3.8 Billion Annually

The National Assembly Budget Office of South Korea estimates that KRW-pegged stablecoins could save local merchants between $275 million and $3.8 billion in annual payment processing fees. While noting that USD-backed stablecoins currently dominate 98.8% of the global market, the report suggests a domestic alternative could be beneficial. However, the office warned of potential risks, including bank deposit outflows, liquidity crises, and stablecoin de-pegging. It recommended implementing strict reserve requirements and yield limitations.