What does the report of BOK say?
On Monday, The Bank of Korea disclosed that it has no immediate projection of agenda to issue Central Bank Digital Currency, because of the trepidation of moral threat. CBDC is different from crypto currencies, whose printing isn’t under Government control and is not issued by the State. The feasibility review put forward concerns like basic mechanics of monetary policies and the Bank’s leverage on open market relations.
Opinions in the report:
BOK researcher, Kwon Oh-ik claimed that the digit currency don’t function as money. Kwon says in the report:
“We reviewed the possible feasibility of digital currencies as currency; however, our thoughts are that digital currencies have been exposed to various categories of risks associated with credit, liquidity and legal management.”
“Technology improvements don’t mean private sectors will be allowed to have the rights for money issuance. If this happens, BOK should regulate them but properly.”
It is the prime belief of The Bank of Korea that CBDCs will sporadically change the prevailing economic system. Furthermore, CBDC is bent upon being the sole authoritative organization to issue money all over the country and is adamantly restraining the notion of permitting private sector companies to issue monetary exchange instruments via digital currencies.
- The Central Bank of Korea is however not invalidating the idea that digital currency could “revolutionize” the world of banking.
- New monetary instruments will require proper testing through numerous trials before it is commercially released.
- Digital Currency Task Force, established in January this year has researched a framework for digital coins like ICOs in the country.
Tweets after the report was published:
“I think we’re in the anger phase of adoption” – Crse tweets
“in other way they are not confident how to print as much as they want with this new technology” — Sanjoy Saha (Twitterati)