The Bank of Korea (BoK) officially stated that it is not going to launch its own cryptocurrency. The regulator made this decision because of a number of concerns about digital assets, The Korea Times reports.
BoK had considered the possible expediency of using a digital coins as a currency. As a result, the bank concluded that it wants to retain a monopoly on the implementation of monetary policy.
BoK’s Key Points:
- The issue of central bank digital currency (CBDC) may lead to subsequent destabilization of the economy.
- The issue of CBDC may reduce the effectiveness of traditional instruments of monetary policy.
- Unlimited use of digital currencies can lead to different kinds of social problems.
- Also, the researchers came to the conclusion that digital currencies do not work as traditional fiat money.
> “We reviewed the possible feasibility of digital currencies as currency; however, our thoughts are that digital currencies have been exposed to various categories of risk associated with credit, liquidity and legal management,” theBoK researcher Kwon Oh-ik said in the report.
However, the regulator is confident that the digital currency can radically change the banking system. Therefore, BoK as thoroughly as possible tests digital currencies and their possible impact. In addition, the bank does not reject the possibility of issuing CBDC in the future.
It is worth noting that Korea also introduced new developments in the field of blockchain. Developers have announced that state is considering a project to create a new blockchain center at Haeundae Beach in Busan in coordination with city authorities on August 30. The Korean crypto beach will be modeled after the Swiss “Crypto Valley” in Zug.
By Ekaterina Ulyanova