Bank of Korea Announces Task Force In-Charge of Researching National Digital Currency Potential

At this point in time, it seems that numerous Asian countries are exploring the potential advantages and disadvantages of central bank digital currencies, commonly referred to as CBDCs. While there is no exact explanation highlighting the reasons behind this Asian-based demand, it is clear that CBDCs offer significant advantages over the traditional financial systems.

With this in mind, recent reports point out that South Korea is now ready to join the race of releasing its very own digital currency. To do this, it has set up a task force, which will be responsible with researching the feasibility of such an endeavour. Therefore, South Korea is officially joining other countries exploring the advantages of CBDCs, including China, Iran, Japan or Russia.

This news was provided directly by the Bank of Korea, through a press statement saying that they are currently holding discussions with the Bank of International Settlements, alongside a few other international organizations on the opportunities associated with CBDCs. Similarly, the Bank of Korea is also paying close attention to what other national central banks are doing on the matter.

These recent developments make perfect sense, considering the fact that earlier this month, the South Korean central bank announced its intention of hiring digital currency specialists. Additionally, Hong Kyung-sik, who is the head of financial affairs and baking division of the Bank of Korea, stated that the institution is exploring the release of a digital currency.

With these aspects in mind, it is not yet known whether South Korea has made up its mind on the release of CBDC. However, the bank has made its intentions known – it is now officially researching and testing out the usability of CBDCs.