November 30, 2023

Central Bank of South Korea will continue to study the state digital currency

The Central Bank of South Korea published a memorandum “Monetary Policy for 2020”, in which it announcedplans for further research on state digital currency.

In addition to inflation, financial stabilityand entering the foreign exchange market, the Bank of South Korea will continue to research the technology of the distributed registry, the functionality of crypto assets and state stablecoins, and also take an active part in the development of payment systems. As part of this initiative, the Bank is organizing a task force consisting of specialists in the field of digital technologies.

In addition, South Korea intends to negotiate with the Bank for International Settlements (BIS) and other organizations to keep abreast of how other banks are progressing in resolving this issue.

In doing so, the Bank of South Korea stands forFinancial Market Infrastructure Principles (PFMI) to improve supervision of internal financial systems. PFMI was developed by BIS to manage credit, settlement and investment risks, as well as the risks associated with the storage of funds and loss of liquidity within payment systems, securities settlement systems and other infrastructures.

In January, the Central Bank of South Korea said it did not seeReasons to issue your own digital currency in the near future. In October, the Bank again expressed its distrust of state stablecoins, explaining its position by the fact that the country already has a developed payment and settlement infrastructure with a high degree of openness.