- Bank of Korea has decided to strengthen its research and development capabilities and is aiming to prepare digital currencies.
- ‘BOK2030’ is the new mid to long term development strategy announced by Han Eun on the 9th of June.
- An official at the bank said that they would be carrying out intensive research on AI, Blockchain, and big data.
In the current ever-changing global economy and economic environment, the bank of Korea has decided to strengthen its research and development capabilities and is aiming to prepare digital currencies.
‘BOK2030’ is the new mid to long term development strategy announced by Han Eun on the 9th of June. The plan ‘BOK2030’ includes the central bank using artificial intelligence and big data, as these are the emerging technologies, for devising the monetary policies.
An official at the bank said that they would be carrying out intensive research on AI, Blockchain, and big data. They’re planning to stay in the fast lane matching the speed of the changing digital innovation here and abroad. Precise GDP growth rate and accurate forecasts expected by the officials using the technologies mentioned above.
Bank of Korea to launch CBDC
The bank also stated that they would look for the technical and legal requirements related to the introduction of the central bank digital currency (CBDC). In order to identify the scope of the policies. An official also said that they would be researching CBDC. They will also keep in mind any technical and legal requirements in advance so that they can productively deal with the shift in the payment markets in the future.
Whether the bank will issue the currency or not, is yet to be confirmed. Although they would be continuously giving out the action plans. If in case, it becomes an absolute necessity to issue the currency. In March of 2020, the bank had already begun a 22-months testing period on developing its own CBDC. A ‘ DIGITAL INNOVATION ROOM’ will be conceived to conceptualize the integration, development, and sharing of digital data. The bank will also be recruiting doctoral-level researchers for its IT sector so that they have a strong backbone in accomplishing their objectives.
The public demands that the BOK should assemble a more convincing and reasonable monetary policy. Granting all this, the public demands don’t stop there. They want the bank, after research, to focus on policies concerning the social phenomena comprising low birthrate, climate change, and swift technological modernization. Only time will tell us whether they can live up to the expectations of the masses.