A senior researcher from the Korea Institute of Finance (KIF) has urged the Bank of Korea (BOK) to explore the issuance of digital tokens representing the Korean won on a blockchain platform. Lee Dae-ki, a leading expert at KIF, emphasized that the central bank should "seriously consider" this move, highlighting the potential benefits such as reducing consumer costs, enhancing transparency, and simplifying payment processes. He believes that the adoption of cryptocurrency could spark a "financial revolution."
In a report released last Sunday, Lee stated:
"Blockchain-based distributed accounting technology can significantly enhance the central bank's cybersecurity defenses and improve the integration of payments between financial institutions and consumers."
However, he also warned that current digital tokens are not yet recognized under domestic law, meaning the central bank is still far from launching a digital version of the won. Despite this, Lee remains optimistic that the BOK will eventually issue digital tokens in the future, which could lead to a major transformation in the banking sector.
He added:
"This shift could revolutionize the banking industry, forcing banks to compete with the digital currency system by offering better interest rates or additional services, ultimately benefiting consumers."
South Korea has become one of the world’s largest cryptocurrency trading markets, but the government maintains a strict regulatory stance. The country has banned initial coin offerings (ICOs), a popular method of raising funds through digital currencies. Recently, South Korea’s top financial regulators have ruled out any plans to regulate cryptocurrencies like Bitcoin, which are not officially recognized as legal tender. Still, the Korean Tax Office is working on developing a tax framework to impose capital gains taxes on cryptocurrency transactions.
Lee pointed out:
"The government is struggling to define what cryptocurrency truly is—whether it should be classified as conventional currency, a commodity, or something else. Different countries treat digital currencies differently, which creates confusion and hinders regulation."
A few weeks before Lee’s comments, a Chinese counterpart made similar calls for the People’s Bank of China to launch its own digital currency. In fact, the PBOC had already conducted successful tests of a digital currency on a blockchain network a year ago, marking one of the earliest central bank initiatives into the digital currency space.
This article reflects the author’s personal views and does not represent the position of Blockchain Pencil or serve as investment advice. The content is intended for informational purposes only.
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