- The world today believes in cashless money and cryptocurrencies.
- The central banks under the use of CDBCs hold the full regulation of client’s accounts as they mantle the entire rule.
- BOK has engaged with the dedication to the research and even took part in the discussions with the Bank of International Settlements.
Today the world is well known as a world of digitalization era. From the services to currencies have fabricated with the face of digitalization. The world today believes in cashless money and cryptocurrencies.
With that thought keeping in mind, the federal regulator issued national digital currencies known by central bank digital currency, or in short CBDC which represent the fiat money instead of decentralized cryptocurrencies.
The central banks under the use of CDBCs hold the full regulation of client’s accounts as they mantle the entire rule. Many countries’ central bank is accommodating with the new strange culture of virtual currencies.
Today with the emerge of acceptance of CDBC, the central bank of South Korea, the Bank of Korea (BOK) have come up with the plan that proposed a task to organize sole research on the active role of payment security and settlement system in the distributed ledger technology, crypto assets, and CBDCs as it published on the “Monetary Policy for 2020” on Dec. 27.
In the essence of the rise in the research on CDBC, BOK has planned on extra recruitment listing down for digital currency experts on the field as reported by the Korea Times, on Dec10.
As of now, BOK has engaged with the dedication to the research and even took part in the discussions with the Bank of International Settlements (BIS) and other relevant international entities for the development with CDBC in other central banks
Now BOK has proposed to follow the BIS’ Principles for Financial Market Infrastructures (PFMI) which works for managing market risks that help in the growth of the principle of domestic financial systems.
With that belief and examination of all possible outcomes from legal to social effects the new centralized digital currency, the central bank of Korea wind up stating as there no reason to issue CBDC for the broader public by the banks shortly.
As worldwide research is emerging on CDBC, a conclusion has arisen stating that the access of CDBC to the public for the use of “general purpose” or “retail” by the financial institutions would be limited.