No Central Bank Digital Currency For South Korea

South Korea’s central financial institution has determined in opposition to issuing a CBDC, citing dangers related to liquidity and credit score, in addition to the authorized implications of managing such a foreign money.1 min


3844328 / Pixabay

South Korea’s central financial institution has determined in opposition to issuing a CBDC, citing dangers related to liquidity and credit score, in addition to the authorized implications of managing such a foreign money.

The Financial institution of Korea (BOK) got here out in opposition to issuing a central financial institution digital foreign money (CBDC) on Monday. It cited considerations that doing so would basically alter financial coverage and probably destabilize the open market.

In early Could 2018, reports emerged through South Korean media shops of ongoing work by the BOK to know the broad ramifications of cryptocurrency and the potential for a CBDC. “A taskforce has been finding out the opportunity of issuing a CBDC and the way digital currencies will affect the nation’s total monetary sector since January,” BOK stated in an announcement at the moment. “We’ll announce updates on this challenge by the top of June.”

Within the newest report, lined by The Korea Times, Kwon Oh-ik, a researcher affiliated with the central financial institution, stated, “Digital currencies do not carry out as cash.”

Kwon continued:

“We reviewed the attainable feasibility of digital currencies as foreign money; nevertheless, our ideas are that digital currencies have been uncovered to varied classes of threat related to credit score, liquidity, and authorized administration.”

In associated information, the Monetary Providers and the Treasury of Hong Kong has confirmed in current weeks that it too has no plans to challenge a CBDC, although it’s nonetheless contemplating the likelihood. The Governor of the Financial institution of England, Mark Carney, additionally not too long ago speculated on CBDCs and raised the query:

“Is our position going to be altering the cost programs and serving to personal suppliers of digital cash, or will we go all the way in which to a central financial institution digital foreign money?”

Melanie Kramer is a contract FinTech, blockchain, and cryptocurrency author based mostly between France and Canada. Melanie has studied, and retains an avid curiosity in, international politics, enterprise, and economics.

Sending
User Review
0 (0 votes)

Like it? Share with your friends!

What's Your Reaction?

hate hate
1520
hate
Angry Angry
1064
Angry
confused confused
456
confused
Fail Fail
760
Fail
fun fun
152
fun
Geeky Geeky
608
Geeky
Lol Lol
456
Lol
OMG OMG
152
OMG
Win Win
1520
Win
WTF WTF
1368
WTF

Comments

comments

Nikolai

Nikolai is a Canadian writer currently living in Singapore. His started writing on Blockchian and bitcoin since 2017, he do Reviews and Analysis on Coins, ICOs. He holds a Master in Business Management and have keen interest in Computer Since, Blockchain and love to write on latest trends in Blockchain space.

We would like to keep you updated with special notifications.

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format