Analyst: The introduction of the Korean won stablecoin will benefit the securities industry, but is expected to have a negative impact on the banking sector

ChainCatcher news, according to Newsis, as discussions about the introduction of a Korean won stablecoin intensify, analysts believe that banks directly issuing stablecoins may lead to a decline in their interest income. According to a report released by NICE Investors Service, the adoption of stablecoins in the financial industry is expected to have a negative impact on the banking sector and a positive impact on the securities industry.

In the case of capital flowing into stablecoins, the banks' deposit base may shrink, weakening their intermediary function. Although banks can alleviate some of the decline in profitability through income from stablecoin reserve operations, their earnings are still lower than loan interest income. Currently, about ten banks have established advisory bodies to jointly address the challenges posed by stablecoins and are considering forming joint ventures to issue a common stablecoin.

Analysts point out that the introduction of stablecoins is expected to have a positive impact on the securities industry in the medium to long term, while the impact on the credit card industry is relatively small. To promote the practical application of stablecoins, conditions such as legal, technical, and economic incentives need to be met.