South Korea's new opening to cryptocurrencies, a central bank study on a state crypto starts

By Roberto D. | CryptoFarm | 30 Dec 2019

That South Korea is one of the most friendly countries towards cryptocurrencies is widely known, so it is not surprising that the country's central bank has decided to set up a task force that will deal with assessing the possibility of issuing a CBDC, in practice a cryptocurrency guaranteed by the central bank itself.

2019 was the year in which governments' attention to the encrypted currencies exploded, but this attention did not translate into a customs clearance for these instruments but in the launch of research and experiments on coins guaranteed by the institutions .

It did not surprise anyone to find out that in the document on monetary policy for 2020, released today, the South Korean central bank laid the foundations for a complete examination of the impact that the issue of a CBDC could have on the country's economy ; the really interesting thing, however, is that within this initiative there is also a recruitment program through which the central bank aims to hire the country's leading cryptography experts.

This aspect denotes the seriousness of the South Korean institutions, while in Europe this type of work is often entrusted to economists, including those of fame, who however have little or no knowledge of cryptography, in South Korea such research will be entrusted to experts in the sector, such as right and natural that it is; at the same time, the South Korean central bank aims to coordinate with the BIS (that which, simplifying, is called the central bank of central banks) to open a discussion on the regulations necessary to regulate the cryptographic ecosystem at a global level.


Another interesting aspect concerns the fact that as early as January of this year the South Korean central bank had declared that it had carefully examined the possible benefits of issuing a CBDC concluding that there were no valid reasons to move in this direction; these conclusions, however, more closely concerned the issue of a cryptographic currency whose use would have been extended to the whole population, currently it seems that many global institutions, such as the South Korean central bank itself, have oriented themselves to explore the impact caused from the issue of a CBDC whose use would remain the exclusive prerogative of the same institutions and large qualified financial operators.

The idea is therefore to issue a CBDC whose use would remain limited to the movement of large volumes of money internationally, reducing costs and bureaucracy; we will see how things will evolve, the feeling is however that the 1920s that are about to begin will mark the definitive transition to the crypto-economy and that, over time, in the end, not only will the CBDC be issued but they will also inevitably replace the money as we have always known it.

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Roberto D.
Roberto D.

Born, and still living, in Italy. Passionate about cryptocurrencies since I discovered ethereum in 2016


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