South Korea budget office sees up to $3.8B in annual card fee savings from won stablecoins

A South Korean parliamentary budget office report estimated that if won-denominated stablecoins replace existing credit card payments, annual cost savings could range from 370 billion won ($273 million) to 5.15 trillion won ($3.8 billion), Edaily reported. According to the report on stablecoins' impact on financial markets and policy implications, the office attributed the potential savings to a blockchain-based direct payment structure. The office added, however, that wider stablecoin use in payments could weigh on the existing financial industry. Lower merchant fees could reduce card companies' earnings, while a shift of funds into stablecoins could shrink bank deposits and weaken financial intermediation, according to the report.