South Korean payment processor BC Card completed a pilot project allowing foreign users to pay local merchants using stablecoins.
The pilot launched in October and was announced Tuesday.
BC Card partnered with blockchain company Wavebridge, wallet provider Aaron Group, and remittance firm Global Money Express for the trial.
Foreign users converted stablecoins from overseas wallets into BC Card's digital prepaid cards.
They then made payments at convenience stores, cafes, and supermarkets using QR codes without physical cards or currency exchange.
What Happened
BC Card is one of South Korea's largest payment companies, reportedly processing over 20% of the country's card transactions.
The company serves 3.4 million domestic merchants and is majority-owned by telecom giant KT Corp.
BC Card said the pilot tested stablecoin usability within Korea's domestic payment ecosystem, focusing on convenience and system stability.
The company addressed key limitations including real-time processing for payment approvals, cancellations, and corrections.
BC Card emphasized this was not a short-term project but preparation for implementing a stablecoin payment structure as regulations evolve.
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Why It Matters
South Korea's Financial Services Commission missed a December 10 deadline to submit draft stablecoin regulations.
The ruling Democratic Party had requested the proposal to fulfill President Lee Jae-myung's campaign pledge.
Lawmakers said delays stemmed from disagreements between the FSC and the Bank of Korea over who should control stablecoin issuance.
The Bank of Korea wants to require banks to own at least 51% of any stablecoin issuer seeking regulatory approval.
The FSC opposes this approach, noting that most stablecoin issuers under the EU's MiCA framework are fintech firms rather than banks.
Japan's first yen-backed stablecoin was also issued by a fintech company rather than a traditional bank.
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