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The Central Bank of Korea urged to "seriously consider" to publish a cryptocurrency Fiat

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A senior researcher from the Korea Institute of Finance (KIF) asked the central bank to issue digitized fiat tokens. earned as a cryptocurrency on a blockchain.

Lee Dae-ki, senior researcher at the Korea Institute of Finance (KIF), suggested that the Bank of Korea (BOK) "seriously consider" issuing digital chips of fiat earned on a blockchain. The researcher cites reduced costs, increased transparency and ease of payment for consumers as reasons to adopt cryptocurrencies that have the potential to become a "revolution in finance," according to a Korea Times report.

"Blockchain-based technology, the distributed accounting database, will be very promising for central banks to improve their defenses against cyberattacks and overall the way payments are made between institutions and institutions. consumers. "

The researcher warned that the central bank is far from creating and issuing a digitized Korean won at a time when digital tokens have no legal recognition in the country.

Still, Lee said that it's possible that the central bank would issue digital tokens on a blockchain, a move that would lead to a complete overhaul of the banking sector.

The researcher wrote:

its desire to reorganize the banking sector to the extent that banks will compete with digital money systems by offering higher interest or additional services that will benefit consumers.

Korea has become one of the largest cryptocurrency markets in the world, a fact that has not escaped the government which is now adopting a firm stance towards cryptocurrencies. The Korean authorities have already banned the issuance of digital tokens via ICO, or initial offers of coins, a new form of fundraising fundamentally fueled by cryptocurrencies. Last week, Korea's leading regulator and financial regulator ruled out regulatory oversight of cryptocurrencies, such as bitcoin, because they are not recognized as currency equivalents by the authorities. Despite the lack of recognition, the country's National Tax Service is developing a framework for applying capital gains taxes on cryptocurrency adopters.

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"Ordinary currencies or commodities that regulate crypto-currencies like bitcoin are, in part, constrained by the government's growing inability to formally name what it is," he said. said Lee. "Some countries consider digital coins as a commodity, while others treat them as ordinary money.

The researcher's comments come a few weeks after a Chinese counterpart issued similar statements urging the Chinese central bank to issue its own digital currency "as soon as possible". Among the first known efforts of a central cryptocurrency research bank, the People's Bank of China successfully completed a first digital currency test on a blockchain a year ago.

Bank of Korea image of Shutterstock.

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