In the second half of 2025, experts predict that the global financial system could undergo fundamental changes. At the center of this transformation lies the 'stablecoin.' While many people are familiar with Bitcoin, stablecoins remain a foreign concept to most. However, failing to understand this concept properly could leave you behind in the coming financial revolution.
The History of Money - From Gold Certificates to Digital Currency
To understand stablecoins, we first need to look at the history of money. In the past, humans traded by exchanging gold directly. But carrying gold around was heavy and inconvenient. So goldsmiths began storing gold for people and issuing 'Gold Smith Notes' in return.
These gold certificates were the beginning of modern currency. People started trading with these notes instead of actual gold, and goldsmiths naturally evolved into banks. Even today, if you look at British pound notes, you'll see the phrase "Bank of England promises to pay the bearer on demand" - a tradition that continues from those original gold certificates.
The key point is that the currency itself doesn't change. It was dollars in the past, it's dollars now, and it will be dollars in the future. What changes is the medium through which that currency is issued and settled - the form of money itself.
The Rise of Digital Assets - Distinguishing Between Virtual Assets and Digital Currency
If 17th-century gold certificates created modern currency, then digital assets in the 2020s are leading a new monetary revolution. But here's where an important distinction needs to be made.
Virtual assets like Bitcoin have limited functionality as currency. They have unclear issuers (decentralized), are difficult to regulate and supervise, and most importantly, they're extremely volatile. It's unsettling to use an asset as currency when it can fluctuate by several percentage points in a single day.
This is where digital currency comes in. There are two main types:
1. CBDC (Central Bank Digital Currency)
- Issuer: Central banks (Bank of Korea, People's Bank of China, Federal Reserve, etc.)
- Characteristics: Issued and managed directly by central banks
2. Stablecoins
- Issuer: Private companies (Tether, Circle, etc.)
- Characteristics: Pegged 1:1 to specific currencies (mainly USD) for stability
CBDC vs Stablecoins - Only the Issuer Differs
Let's look at China's DCEP (Digital Currency Electronic Payment) as an example. When the People's Bank of China issues CBDC, commercial banks deposit equivalent cash with the central bank and receive DCEP in return. They then distribute this to individuals and businesses. Chinese civil servants actually receive part of their salaries in DCEP and use it for subway fares, shopping, and other transactions.
South Korea has also been developing CBDC since 2020, with the Bank of Korea launching a three-month pilot test called 'Project Hangang' from April to June 2025. In this test, you can actually pay with CBDC at 7-Eleven stores. The system works by converting cash to CBDC through banking apps and paying via QR codes.
The Core of Stablecoins - Revenue Generation Structure
The real distinguishing feature of stablecoins lies in the revenue structure of issuing companies. Companies like Tether and Circle appear to simply give you 1 coin for 1 dollar, but they don't just store the received cash as-is.
Here's the key:they can invest a portion of the received cash in government bonds. If treasury bond yields are 4%, stablecoin issuers can earn 4% returns. The more coin buyers there are - meaning the more cash they collect - the greater profits they can generate.
So why do people use stablecoins? Let's consider an extreme example with Samsung Group. When Samsung Electronics' US subsidiary conducts trade with Samsung Electro-Mechanics' Korean factory, using traditional banking networks requires going through multiple institutions, taking a long time and incurring high fees.
But with stablecoins, transfers can happen almost instantly with virtually no fees. For large corporations, this becomes an extremely useful tool for inter-subsidiary transactions, global employee payroll, and more.
The Explosive Expansion of Stablecoins
The expansion of stablecoins was already predicted back in 2020. Economic forecasts at the time stated that "the future where central bank digital currencies from various countries begin to be issued and private company-centered stablecoins like Tether emerge as global currencies is not far away."
Indeed, Tether's current market cap has reached $152.9 billion. The number of issuing companies is also diversifying beyond just Tether.
What's even more noteworthy is real-world adoption. Startups like Ledger Pay have created business models that allow you to charge Bitcoin or Tether and use them for card payments. Through partnerships with US Visa cards, they're usable at over 130 million merchants across 158 countries.
In South Korea, you can use them at Starbucks, karaoke rooms, taxis, and even withdraw cash from ATMs. As users and acceptance points continue to grow, stablecoins are gaining real-world traction.
Legislation - The Game-Changing Variable
The most important variable in stablecoin expansion is legislation. Until now, businesses have operated without relevant legal frameworks. Who would actively jump into the stablecoin business when it could become illegal at any moment?
But once stable legal frameworks are established, the situation changes completely. It's like having no playground and then suddenly having one built. Many companies are waiting for the Trump administration's 'Liveness Act' to pass for exactly this reason.
Legislation isn't just about creating regulations - it's about providing transparent rules of the game. It establishes clear standards for how much assets stablecoin issuers must hold and disclose, and how they should operate.
2025: The Dawn of Stablecoin Wars
Stablecoins are becoming more than just technological innovation - they're becoming core tools in financial hegemony competition. The US wants to maintain dollar dominance, while China seeks to challenge it. In this process, stablecoins and CBDCs will play crucial roles.
Particularly if stablecoins establish themselves as payment methods in international trade, the influence of exchange rates on global commerce could weaken. This would mean fundamental changes to the existing financial system.
South Korea must also respond to these changes. We need to address medium to long-term challenges about which currency to base our external transactions on and what our own digital currency strategy should be.
Stablecoins are no longer optional - they're becoming essential. The world after the second half of 2025 will look quite different from today, and stablecoins will be at the center of that change. To avoid being left behind by this massive wave of transformation, now is the time to deepen our understanding of stablecoins.