It’s getting harder to deny that central banks are threatened by the potential of cryptocurrency, as more organizations and corporations seem to acknowledge that both blockchain and cryptocurrency will revolutionize various sectors. One of the most important figures in finance, Christine Lagarde, of the International Monetary Fund, has been vocal about the potential of the space, for example.
Of course, one way to evolve is for central banks to actually issue their own cryptocurrency. There are many countries that have at least explored the possibility, and South Korea is one of them. However, South Korea’s central bank has stated that they will not be doing so.
The Bank of Korea (BOK) announced the decision after evaluating a study that considered the idea. They aren’t the only central bank to ultimately decide against issuing a CBDC (central bank digital currency), either. The European Central Bank (ECB) has repeatedly stated that they will not be doing so, either.
The study did explore how a central bank digital currency would have an economic and social impact on South Korea. However, it is important to note that the studies aren’t necessarily over. A BOK official simply stated: “We have no plans to issue any type of CBDC that is available for all people in the near future.”
Much like India, South Korea seems to be conflicted about cryptocurrency. Of course, there are bound to be politicians that disagree, but some thought that South Korea would break from the region in order to become a hub for blockchain technology. However, that doesn’t appear to be the case.
However, there is one exception, in the form of Seoul mayor, Park won-Soon, who believes that blockchain technology can transform the city. He notably even introduced a fund specifically designed to attract blockchain startups, and wants to embrace the sector wholeheartedly.