South Korean Central Bank Of Korea (BOK) Will Not Issue A CBDC Digital Currency Soon
South Korea’s Central Bank Will Not Issue A Digital Currency Soon
The Bank of Korea, which acts as the central bank of the Asian country, has recently affirmed that it would not issue a central bank digital currency (CBDC), a popular idea that many banks are considering at the moment.
According to the bank, which claims to have done an in-depth study of the area and decided that there is no reason for rushing and creating a CBDC in the close future.
Korea Herald, a local newspaper of the region, has also affirmed that an unnamed official of the bank has been analyzing the possible social and legal ramifications of a product like this one and that they need to make more research in order to discover what can really be the benefits of using this technology in the country.
While this may disappoint some crypto enthusiasts (or not, as some of them are really not fans of central banks), the Bank of Korea has expressed its interest in conducting further plans in the future which are set to determine the possible impact that these technologies will have.
A CDBC, in case you do not know, differentiates from a cryptocurrency because they are centralized. Instead of not having an owner, these tokens are backed by the central banks and can be used as currencies.
At the moment, no bank has actually devised these tokens in a proper way. The Nicolas Maduro govern in Venezuela was one of the first to issue a token like this one, but the Petro was not very well received internationally and can be considered to be struggling.
A report from the Bank of International Settlements (BIS), which is based in Switzerland, has affirmed that at least 70% of the central banks around the world are making experiments with CDBCs, so there is a big chance that some of them will actually create one eventually.