Capital Controls Doom Asia’s Stablecoin Dreams—Except in Hong Kong

In the lead-up to Seoul's Korea Blockchain Week, discussions about a Korean Won stablecoin were among the leading narratives. The idea carries political weight, positioning local currencies as digital alternatives to the U.S. dollar. However, despite the enthusiasm, most Asian currencies are hindered by capital controls that render them unsuitable for global circulation. That leaves the Hong Kong dollar as the region’s only truly usable stablecoin base. In Korea, a bill to legalize stablecoins is making its way through the country's legislative bodies. Lawmakers are clear that the initiative is...