South Korean payment company BC Card has concluded its pilot program testing how foreign consumers can pay domestic merchants using stablecoins. The initiative assessed the stability and practicality of integrating digital currencies into the payment ecosystem of the Northeast Asian country.
According to a press statement published on BC Card’s website late Tuesday, the two-month-long pilot was conducted in partnership with blockchain financial firm Wavebridge, international digital wallet provider Aaron Group, and cross-border remittance company Global Money Express.
BC Card finalizes testing phase for stablecoins remittance
In September, BC Card filed a patent for the technology to facilitate stablecoin payments, becoming the first company in the South Korean market to do so. The system calculates the exact number of coins to be deducted from a customer’s digital wallet, accounting for price fluctuations in exchanges, so consumers pay only the necessary amount.
During a press briefing at the time of the patent filing, the president of BC Card, Choi Won-seok, said stablecoins are “a powerful paradigm that can transform existing payment processes.” “As the operator of Korea’s largest payment network, BC Card will lead efforts to create an environment where stablecoin payments can be used anywhere with ease,” Choi told reporters.
The South Korean payment giant has now completed the program, saying it “verified whether foreign currency-based stablecoins held by foreigners could be used within the domestic payment environment.” The demonstration involved converting stablecoins held in overseas wallets into digital prepaid cards, then using the currency-pegged coins at local cafes and supermarkets through only a QR code, similar to its cross-border payment system with Thailand’s Bangkok Bank.
In July, Bangkok Bank and South Korea’s BC Card partnered to launch cross-border QR payments between Thailand and South Korea. South Korean users of the Paybooc app can now make instant QR payments while in Thailand, with transactions processed using real-time exchange rates, according to the companies’ press release. The stablecoin pilot program also incorporated payments into BC Card’s existing card approval and settlement system.
According to BC Card executives, the technical verification test is a preparatory step for creating a stablecoin payment structure in preparation for changes in domestic laws and financial regulations. The company also mentioned it would continue collaborating with crypto-affiliated organizations to help develop a “Korean-style stablecoin payment infrastructure.”
