According to the Yonhap News Agency, the Bank of Korea (BOK) said that a state-owned and digital currency in the form of a central bank digital currency (CBDC) will not be released in South Korea.
According to the source, the Bank of Korea issued a report voicing concerns about low deposit demands for commercial banks, which could result from the application of a state-supported CBDC to the financial system.
One of the co-authors of the report, Kwon Oh-ik, wrote:
Ü CBDC is a kind of bank account given by the Korean Bank. People rely more on people than a commercial bank. İnsanlar
This means that customers are likely to rely on the blockchain-based currency, which is supported by the Korean Bank, in contrast to the way they transfer and transfer money. At the same time, this may lead to low liquidity in commercial banks, such as customers withdrawing their money. This situation always raised interest rates.
CBDC Protects Independence
If commercial banks are largely dependent on the credit infrastructure and the deposit services are reduced, the interest rates will increase if banks make liquid cash access difficult for credit maintenance. This can reduce the patronage and therefore reduce the work of these banks.
Blockchain and banks around the world crypto coins discussed different application models. There is such a possibility and talks about facilitating cross-border payment infrastructures. Banks have defined CBDCs as a state-type crypto currency that will form the precision of a currency.
In the end, it is one of the things that some central banks and crypto enthusiasts can accept. blockchain is a digital asset built on it, as well as a means of value, as well as a means of change, and possibly the replacement of the old national currency.
Crypto currencies may play an important role in the massive adoption, but the central bank of South Korea has a different view.
Bank last week; He said that many financial institutions around the world are not in a hurry to publish, although they are well received by the potential of the financial instrument. The report issued by the Bank also reiterates its position on the CBDC.
- Previous content about CBDC from here you can reach
Source: Bitcoinnews