Bank of Korea Seeking Technology to Develop Digital Currency
South Korea’s central bank is seeking technology that can be used to commercialize digital currency in the future, according to a report from Yonhap News. Bank of Korea (BOK) officials are preparing for the eventual phasing out of physical cash, and they are hoping to support the country’s commercialization of digital currency as a useful tool in the drive to reduce costs and improve the efficiency of financial transactions.
In a recent announcement, the Bank of Korea (BOK) revealed that it is seeking technology to develop its own digital currency. According to the BOK, it is looking for a way for financial institutions to settle transactions without relying on bank accounts or the traditional banking system. The BOK hopes to build its own blockchain technology, which it hopes organizations will be able to use to transfer money to each other without going through a bank. “We will look for the candidate companies through a request for proposal and hope that we will be able to start testing the technologies in November,” said the BOK’s blockchain team leader.
The Bank of Korea (BOK) is seeking technology to develop digital currency, according to the bank’s governor Kim Yong-beom, at a press conference held at the end of last month, reported Yonhap News on May 31st, 2018. The BOK is working with the country’s financial regulator to develop its own digital money, the governor said.. Read more about bank of korea cbdc and let us know what you think.
South Korea’s currency regulator is taking steps to create its own digital currency. The Bank of Korea is now looking for a technology provider to develop a test environment for the project. The news comes after major commercial banks expressed skepticism about working with domestic cryptocurrency exchanges.
The Central Bank of Korea will establish a pilot platform for CBDCs
The equipment supplier will be selected through a public tender, the Bank of Korea (BOK) announced Monday. It is tasked with creating a pilot platform for the launch of the Central Bank of South Korea (CBDC) digital currency. According to a report by Reuters, the bank’s plan to investigate the problem and conduct tests is the first step in that direction by Asia’s fourth largest economy. With the growing cryptocurrency space offering an alternative to traditional finance, dozens of central banks around the world have begun CBDC projects. China is developing its digital yuan, the U.S. Federal Reserve is working on prototypes of the digital dollar, the eurozone ECB is considering a digital euro, and the Bank of Russia will unveil a prototype digital ruble this year. At a press conference, a spokesperson for the BOK commented as follows: The share of cash transactions is declining significantly. The steps we are taking now are designed to prepare for changes in the settlement system. The Korean central bank also said the testing platform will help commercial banks and model retail stores. The tests also cover mobile payments, money transfers and deposit processing. The pilot program runs from August to December this year, but a second phase could extend the tests.
Commercial banks are reluctant to cooperate with cryptocurrency exchanges
With Korea’s central bank exploring the possibility of issuing a state-controlled digital currency, decentralized cryptocurrencies have caught the attention of South Koreans. The local price of the leading cryptocurrency BTC has reached a record high of around $72,000 this year, but the volatility of the market has led to regulatory concerns. The BOK recently announced plans to closely monitor cryptocurrency transactions through real name accounts used by Korean traders. However, major banking institutions have expressed skepticism about partnering with cryptocurrency exchanges. According to a report in the Korea Herald newspaper, financial groups like Hana have decided not to open bank accounts under their real names for trading cryptocurrencies. Others who have, such as K Bank, which opens accounts for crypto traders on Upbit, see no reason to continue doing so. A senior official of Woori, KB’s second largest shareholder, was quoted by Yonhap: The benefits of partnering with cryptocurrency exchanges, including trading commissions, far outweigh the risks associated with potential money laundering and hacking issues. Upbit is one of only four domestic crypto currency exchanges currently working with commercial banks to implement a real-name system, along with Bithumb, Coinone and Korbit. In April, the Korea Financial Services Commission warned that about 200 coin exchange platforms currently operating in the country could be shut down due to new regulations that would be introduced in September. Registering accounts under a real name is one of the main requirements that small cryptocurrency exchanges cannot meet. What do you think of the Bank of Korea’s plan to develop a digital currency? Let us know what you think of the project in the comments section below.
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Bank, Bank of Korea, banks, buck, CBDC, crypto exchanges, crypto traders, cryptocurrency, cryptocurrency, digital currency, financial institutions, Korea, Korean, partner, pilot platform, project, provider, South Korea, technology, test, testing Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The Bank of Korea, the central bank of South Korea, is seeking the development of a “next-generation” technology to develop its own digital currency, the Financial Services Commission (FSC) disclosed on Feb. 27. The move comes in response to the rising interest in cryptocurrencies, local news outlet Chosun reports, noting that the central bank is planning to bolster security and transparency of the financial system by launching its own digital currency.. Read more about u.s. digital currency and let us know what you think.
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