The Bank Of Korea (BOK) Opposes The Idea Of Digital Currency Issuing
On Monday the Bank of Korea (BOK), which is the central bank of the Country, says that it resists the idea of central bank digital currency (CBDC) as launching CBDC will increase the main mechanics of financial policy and its execution, involving the use of open market operations by the banks.
The BOK underlined that the bank doesn’t have any ideas “for the time being” to allow individual sector gamers release currencies as the central bank should have “appropriate control” over financial situations and conditions of creditors and clients.
The statement mentioned that the Book’s focus has been preventing the best interests of clients searching for stronger financial stability and warning digital currencies from potentially being utilized as a measure of crime.
It is mentioned in the report that CBDCs may “revolutionize” the banking financial system but prior going act they must be fundamentally checked via numerous testings. Kwon Oh-ik, a researcher at the bank’s economic policy bureau said in the report:”Technology improvements don’t mean private sectors will be allowed to have the rights for money issuance. If this happens, the BOK should regulate them but properly.”
The report publishing is the BOK’s answer regarding digital tokens after its task force, which has been functional from January this year, has been examining the opportunity of releasing a CBDC and how digital currencies will have impact Korea’s total monetary sector.