Recent reports suggesting widespread use of USDT stablecoins at Seoul’s Dongdaemun Market are being dismissed by local vendors. Despite claims from online forums and media sources, the reality appears to differ significantly.
Claims of Crypto Payments in Fashion Hub
At the start of the month, discussions on South Korean crypto forums suggested that many merchants at Dongdaemun Market were adopting USDT, a USD-pegged stablecoin, for transactions. Posters cited examples of vendors accepting payments in Tether and claimed that approximately 10% of wholesale transactions were conducted using stablecoins.
The market, known for its multi-story buildings and bustling trade in fashion and textiles, is a prominent destination for wholesale buyers, particularly from China. Earlier reports attributed the alleged adoption to Chinese merchants paying South Korean vendors with Tether for wholesale goods.
Vendors Refute Crypto Payment Claims
However, a Viewers media outlet reporter, Hwang Bo-ram, investigated the claims and found little evidence to support them. Multiple traders at Dongdaemun Market stated that cash remains their preferred payment method.
Hwang’s interviews revealed that while stablecoins are gaining awareness, they are far from mainstream in the market. Vendors highlighted concerns over transaction traceability, as many prefer cash for its anonymity, likely to avoid leaving digital records for tax purposes.
Resistance to Change Among Traders
Lee, a veteran men’s clothing trader with 20 years of experience at Dongdaemun, emphasized the reluctance to adopt new payment methods:
“Stablecoins are not widely used here. Most traders prefer cash and are resistant to change, especially when it involves leaving transaction records.”
Another vendor, Park, noted that the age of traders plays a role. Most merchants were born in the 1950s and 1960s, making them less inclined to adopt cryptocurrency or digital payment methods.
Smartphone Payments Gaining Popularity
While stablecoins may not have taken hold, smartphone-based payments are reportedly increasing among Chinese customers. According to Myung-hee, a part-time employee at a Dongdaemun shopping mall:
“Many Chinese customers use their smartphones for payments, but I’m unsure if these transactions involve cryptocurrency.”
Cryptocurrencies’ Growing Role in Trade
Despite the reluctance of Dongdaemun merchants, some evidence suggests that cryptocurrency usage is expanding in other sectors. A recent article in Weekly Dong-a noted the increasing use of cryptocurrencies in global trade, including textiles and electronics.
Tether’s dominance in China further supports this trend. According to Chainalysis, USDT has become the preferred fiat substitute in Chinese trading, even amid Beijing’s crypto restrictions.
Dongdaemun Market’s adoption of stablecoins remains limited, but the potential for future integration cannot be ruled out as digital payment systems evolve
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