South Korea’s NH NongHyup Bank pilots stablecoin-led tax refunds on Avalanche

NH NongHyup Bank, one of South Korea's largest banks, has launched a proof-of-concept (PoC) in collaboration with Avalanche, Fireblocks, Mastercard, and Worldpay to digitize value-added tax (VAT) refunds for inbound tourists using stablecoins for real-time settlement. The PoC aims to test smart contract automation and stablecoin-based settlements on the Avalanche blockchain, though it will not use real funds or customer data. According to Executive Vice President Choi Woon-jae, this model seeks to improve customer experience and national competitiveness by enhancing cross-border payment efficiency for the growing number of tourists. The project intends to evolve the paper-based refund process by automating data recording and enabling delay-free settlements via stablecoins. NH NongHyup plans to develop these services further in line with forthcoming regulatory guidelines for Korean won-pegged stablecoins.

(Source：The Block)