A local report shows that the Bank of Korea (BOK) is taking serious steps towards adopting the trend for Central Bank Digital Currencies (CBDC).
BOK has made this known by setting up a special Task Force with the intention of researching Central Bank Cryptocurrency as included in the bank’s “Monetary Policy for 2020,” The research will target innovations, such as distributed ledger technology, cryptocurrency assets, and CBDCs with the sole purpose of providing a better understanding of how digital assets operate. Given the rising trend of global central banks adopting the CBDC idea, BOK is likely to hire additional experts.
The head of the central bank’s payment and settlement systems department, Hong Kyong-sik, had reportedly said;
“We will actively engage in discussions with the Bank for International Settlements (BIS) and other international organizations, keeping an eye on CBDC development at other central banks.”
He also said that they are considering launching a digital currency of their own. The media attention expectedly increased after that, but a spokesman from the bank denied those assumptions, clarifying that they only plan to strengthen their efforts for CBDC research.
The General Manager of BIS recently spoke about the emerging trend of digital assets. Though his reservation about Bitcoin and other already established cryptocurrencies still exists, he has said that central banks have to embrace the digital money revolution. He further explained that the responsibility fell on them to stay at the center of the global payments system, or risk being overtaken by other establishments.
CBDC related trends have been on the rise this year, with China and the E.U, taking the lead and more recently, the Bank of Russia which was reported by CryptoPotato on the December 26th, 2019. According to the head of the country’s central bank, there has been efforts to test digital currencies in regulated sandbox, which might be the final step before being open to public use.