Bank of Korea: “There is no need for state cryptocurrency”

The Bank of Korea does not see the need to issue its own cryptocurrency. Despite the popularity of digitalcurrencies in the country, the Central Bank is skeptical about state cryptocurrencies.

According to The News Asia, Bank of Korea continuesthe study of digital assets and the potential of state cryptocurrencies. Recently, a special research department has opened in the bank, which is engaged in this area. Thus, the Bank of Korea has joined the global trend of central banks to allocate resources to explore the potential of blockchain-based assets.

Bank of Korea official Eun Han spoke aboutCentral Bank positions in the report on the development of state cryptocurrencies by the largest countries of the world. The document states that a well-functioning system of electronic payments already exists in South Korea, and there is no urgent need for state cryptocurrency.

According to the report, some electronic servicespayments operating in Korea use the blockchain. The Bank of Korea considers the use of any electronic payment solution, such as KakaoPay, Samsung Pay, Payco or Naver Pay, sufficient to satisfy the public's need for reliable digital access to transfer funds for any legitimate purpose.

Developed countries, such as Canada and Singapore,which also have well-functioning and efficient payment systems, emphasize state cryptocurrencies for large-scale settlements, for example, transactions between financial institutions. This type of payment and settlement system can also be used for domestic payments, which cannot be supported by current consumer payment systems.

The document notes that the releasestate cryptocurrencies on the blockchain simplifies the transaction process and increases its security. On the other hand, some developing countries, such as Uruguay, the Bahamas and Cambodia, are developing state-owned cryptocurrencies for micropayments to reduce capital management costs.

According to Khan, at the moment the ways in whichguided by international governments in the development of state cryptocurrencies, not suitable for the Bank of Korea. Micropayments are almost entirely carried out by payment services for consumers, and the use of Korean won at the international level further facilitates the settlement of large transfers for the Central Bank of Korea.

Other central banks, including FederalUS reserve, began to take more seriously the possibility of issuing its own digital currency. This week it became known that in mid-April, the leaders of the six central banks, as well as the Bank for International Settlements (BIS) will hold a meeting in Washington to discuss the possibility of creating their own digital currencies.

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