The potential application of the South Korean won stablecoin in the K-pop sector has sparked controversy.

Recently, discussions in South Korea about launching a stablecoin denominated in Korean won have been heating up, which has also sparked a lot of skepticism. Some people believe that whether a won stablecoin can find its footing in the dollar-dominated stablecoin market is still a question.

Some lawmakers and industry insiders from the South Korean Democratic Party have proposed that K-pop related transactions could be a potential application scenario for the KRW stablecoin. They suggested that K-pop platforms adopt KRW-backed stablecoins to allow global fans to more conveniently make purchases or buy concert tickets.

At an economic policy seminar organized by the Democratic Party, South Korean Member of Parliament Min Byoung-dug stated: "If the market is dominated by dollar-denominated stablecoins, the Korean won may be marginalized. To maintain a portion of the payment ecosystem, we should allow globally influential content and products to transact using stablecoins based on the Korean won."

A stablecoin is a type of cryptocurrency that is pegged to real assets such as fiat currencies or government bonds, aimed at minimizing price volatility. They enable around-the-clock, instant transfers with very low transaction fees, without the need for intermediaries such as banks or credit card companies. Stablecoins are particularly advantageous in cross-border transactions and withdrawals.

With the United States passing the Genius Act, which officially brings stablecoins into the regulatory framework, the potential applications of stablecoins are expected to further expand.

Those who support the use of stablecoins in K-pop payments believe that stablecoins backed by the Korean won can significantly improve South Korea's cross-border payment infrastructure. A research analyst stated: "Stablecoins can streamline the payment process for overseas customers, eliminating the common remittance and currency exchange barriers when accessing Korean content."

International K-pop fans also acknowledge that there are issues with the current payment systems. They reported to the media that some websites and applications do not accept foreign-issued bank cards, especially those services that require identity verification. Additionally, the payment systems often crash during peak times (such as when concert tickets go on sale).

If a stablecoin system is adopted, fans can purchase stablecoins denominated in Korean Won through cryptocurrency trading platforms and directly send them to the purchasing account, thus completing transactions more efficiently.

The advantages of this system are evident for suppliers. Once widely adopted, it can save on foreign exchange fees and high transaction costs paid to traditional payment networks, thereby improving profitability.

In addition, there is the possibility of additional revenue generation. For example, if a large entertainment company launches its own stablecoin and uses it to sell merchandise directly to fans, the company can earn interest from the preloaded funds in users' wallets, just like the stored value cards of certain coffee chains.

However, for consumers, this incentive may not be strong enough unless certain products are sold exclusively through stablecoins backed by the Korean won.

The current payment systems can be frustrating at times, but they are not unusable. Some globally popular platforms have introduced various international payment methods.

Moreover, although financial practitioners often overlook this, a large portion of the public is still unfamiliar with cryptocurrency. If the introduction is not handled properly, the stablecoin system may ultimately be more complicated than the traditional payment methods it seeks to replace.

A senior research analyst pointed out: "The core advantage of stablecoins lies in their ability to eliminate unnecessary intermediaries in the financial system. The key is to ensure that consumers do not need to manually convert to stablecoins, making this process seamless and not affecting the user experience."

Although some international K-pop fans are interested in the idea of changing the payment experience, others are more cautious. Most people said they had never heard of stablecoins before.

A Filipino fan compared this initiative to the previous craze of NFT projects in the Korean pop music industry, which ultimately failed. "They think K-pop fans are easy to market to, but we are actually more selective."

Another fan questioned whether policymakers truly understand the fan experience. "The government should abandon the idea that 'as long as it's built, fans will participate.' We can't help but ask if the decision-makers themselves have ever bought tickets to a K-pop concert."

Currently, this is still just a concept. The Democratic Party of Korea has begun to promote legislation to formally establish a stablecoin framework based on the Korean won, but specific guidelines have yet to be determined.

Another senior analyst from a research institution stated: "Currencies limited to a single industry, rather than widely applied across various industries, are unlikely to achieve economies of scale. It is important to consider what tangible benefits a stablecoin backed by the Korean won can bring to the South Korean economy, and not focus solely on a single use case."