South Korea considers the state cryptocurrency as an instrument of transition to a cashless society

South Korea considers the state cryptocurrency as an instrument of transition to a cashless society

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Next month, the Bank of Korea will announce the details of the ongoing study, which, among other things, includes the issue of cryptocurrencies issued by central banks (CBDC).

In a statement published on Wednesday, the Bank of Korea confirmed that it was in the “early stages of studying” the cryptocurrency and the possibility of issuing them at the state level.

“The working group is studying the possibility of issuing CBDC and the impact of the cryptocurrency on the country’s financial sector since January. We will publish the results by the end of June,” the bank reported.

The regulator stressed that it is too early to talk about the possibility of issuing its own cryptocurrency on the basis of the Bank of Korea, yet at the same time noting that it is monitoring similar initiatives in other countries.

Earlier, the Bank of Korea announced its intention to test the pilot project of a “cashless society”, the central role in which can play the blockсhain and cryptocurrencies.

South Korea owns one of the largest cryptocurrency markets in the world. The government of the country and some of its cities repeatedly used the blockchain in practice, including in the field of logistics, voting and insurance.

In April, Mayor Seoul Pak Vonsun said that the Korean capital in the near future could issue its own S-Coin cryptocurrency, which will be used to make payments under state social assistance programs or to pay for private contractors.

It is expected that the transition to a non-cash form of settlement may allow South Korea to save up to 1.1% of its GDP.

“This will open the clandestine housekeeper and increase tax collections. Shoeboxes filled with banknotes of 50,000 won, which are shown in the films, will simply disappear,” said analyst Quak Hyunsu, who studies the problem of transition to a cashless society

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