The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Sat, May 21, 2022 | 22:30
Policies
'BOK will not issue digital money'
Posted : 2018-06-18 17:36
Updated : 2018-06-18 19:25
Print Preview
Font Size Up
Font Size Down
The Bank of Korea Governor Lee Ju-yeol responds to a question after the country's central bank left its benchmark key rate unchanged at 1.5 percent from its monetary policy meeting May 24. Yonhap
The Bank of Korea Governor Lee Ju-yeol responds to a question after the country's central bank left its benchmark key rate unchanged at 1.5 percent from its monetary policy meeting May 24. Yonhap


By Kim Yoo-chul

The Bank of Korea (BOK), the country's central bank, said Monday it opposes the idea of central bank digital currency (CBDC) as issuing CBDC will raise the basic mechanics of monetary policy and implementation, including the bank's use of open market operations.

The bank is worrying over concerns that such a sudden launch of the CBDC will cost society a lot and cause a moral hazard. Also, issuing CBDC could destabilize the market order because digital currencies don't currently constitute money.

"It's desirable that the BOK is the only entity to entirely control issuing money," according to the report.

"We reviewed the possible feasibility of digital currencies as currency; however, our thoughts are that digital currencies have been exposed to various categories of risk associated with credit, liquidity and legal management," Kwon Oh-ik, a researcher at the bank's economic research institute, said in the report. "Digital currencies don't perform as money."

The BOK said the bank doesn't have plans to let private sector players issue currencies as the central bank should have "appropriate control" over financial conditions of lenders and consumers.

BOK's focus has been protecting the best interests of consumers, seeking greater financial stability and preventing digital currencies from possibly being used as a measure of crime.

CBDCs may "revolutionize" the banking financial system but before going live they need to be thoroughly tested through multiple trials. "Technology improvements don't mean private sectors will be allowed to have the rights for money issuance. If this happens, the BOK should regulate them but properly," said Kwon in the report.

The release of the report is the BOK's response about digital tokens after its task force, which has been operational since January this year, has been studying the possibility of issuing a CBDC and how digital currencies will influence Korea's overall financial sector.




Emailyckim@ktimes.com Article ListMore articles by this reporter
 
  • Pro-, anti-Biden demonstrations to be held in front of Hyatt hotel
  • Yoon, Biden vow to strengthen Korea-US tech alliance
  • S-Oil CEO apologizes for deadly refinery explosion in Ulsan
  • South Korea-Japan relations in the shadow of Ukraine
  • Biden arrives in South Korea for first summit with Yoon
  • Samsung, LG expand into appliances with pet care features
  • Baseball, dogs: What Yoon, Biden have in common
  • Gov't extends mandatory quarantine for COVID-19 patients for 4 more weeks
  • NASA Artemis mission draws attention as Korea, US seek cooperation in space
  • Yoon, Biden to discuss Korea-US tech alliance in nuclear energy
  • Reality shows raise concerns by zooming in on private lives of people Reality shows raise concerns by zooming in on private lives of people
  • Kim Sae-ron apologizes for her alleged DUI incident Kim Sae-ron apologizes for her alleged DUI incident
  • TvN drama 'Rose Mansion' criticized for animal abuse scene TvN drama 'Rose Mansion' criticized for animal abuse scene
  • Former GFriend member Yerin makes solo debut with 'Aria' Former GFriend member Yerin makes solo debut with 'Aria'
  • 'The Roundup' off to record-setting start at box office 'The Roundup' off to record-setting start at box office
DARKROOM
  • People in North Korea trapped in famine and pandemic

    People in North Korea trapped in famine and pandemic

  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

  • End of mask mandates

    End of mask mandates

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group