Tag: enhancing cross-border payment

South Korea’s top bank trials stablecoin VAT refunds

The post South Korea’s top bank trials stablecocom. One of the top five largest commercial banks in South Korea, NH NongHyup, has announced that it has initiated a proof of concept (PoC) to digitize its VAT refund service for foreign tourists using blockchain technology and test the concept of instant payments with stablecoins. For the experiment to be carried out successfully, sources close to the matter said that the proof-of-concept will be conducted in collaboration with Worldpay, Mastercard, Fireblocks, and Avalanche. While the process is ongoing, customer details or real money will not be required because the intended purpose of this PoC is to check whether the technology adopted functions properly and can be used effectively, according to the press release. Meanwhile, South Korea recently announced that it is close to finalizing its long-awaited stablecoin legislation, as the central bank and financial regulator jostle over who should regulate digital tokens pegged to the won. The Financial Services Commission (FSC) plans to submit a government-sponsored bill by the end of 2025. It will join five other competing stablecoin bills under review in the National Assembly, which individual lawmakers have submitted. NH NongHyup aims to lead in the digital transformation of Korea’s tourism economy In a statement, Choi Woon-jae, the executive vice president of NH NongHyup Bank, stated that the refund model based on stablecoins demonstrates how blockchain technology can actually enhance national competitiveness and boost customer experience. Therefore, with this ability in mind, Choi outlined their goal: to secure the top ranking in the digital transformation of Korea’s tourism economy by implementing strategies like enhancing cross-border payment and settlement efficiency. The PoC, on the other hand, focuses on attracting the booming tourist volume visiting South Korea by streamlining.