The Bank of Korea has hinted at the potential launch of a state back crypto currency. No further details have been given such as a name and issuance details as the state continues research and development about the prospective applications of crypto for South Korea.
Crypto technology has already gained a significant foothold in Korea with the nation being one of the biggest bitcoin consumers on the planet. Furthermore the mayor of Seoul, the South Korean capital, has expressed a interest in distributing the S-Coin for use in public service and public benefit programs.
A taskforce has been studying the possibility of issuing a CBDC and how digital currencies will influence the country’s overall financial sector since January. We will announce updates on this issue by the end of June.
Whilst this situation would not even have been dreamt off during last month when rumors of a bitcoin ban were circulating, the state has revealed its intentions to push a cashless society in the future, with crypto laying the foundations. The country has experienced its fair share of tax evasion leading to a call for blockchain technology to be introduced allowing for a efficient government and crackdown on money laundering activities.
To conclude, South Korea becomes the latest country among a number of East Asian countries including Japan to experiment with crypto. While the likes of Venezuela have already experienced the thrill of crypto, South Korea aims to take a much more conservative approach. It has current researched the various use cases of crypto and while blockchain technology has made a appearance in the insurance sector, the Bank of Korea remains apprehensive about the currency applications crypto may offer. Updates are set to come out by June, as the state remains heavily invested in the technology that could bring about a end to tax evasion by South Korean traders and help initiate the future of a cashless society.