BOK says no plan to introduce digital currency

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BOK says no plan to introduce digital currency

The Korean central bank said Tuesday that it has no plans to issue authorized digital currency in the near future despite heated debate over virtual money across the world.

The Bank of Korea (BOK) has completed a study on the prospects for the introduction of a central bank digital currency (CBDC), referring to a form of fiat money that is issued by central banks and governments.

Its final report said there is no urgent need for the BOK to introduce CBDC in the close future, while other leading central banks, including the U.S. Federal Reserve, have also denied such possibilities.

Only a few small economies, including Sweden and Tunisia, are considering the implementation of digital fiat currency as a way to supplement their financial settlement systems.

“We have no plans to issue any type of CBDC that is available for all people in the near future,” an unnamed BOK official said in a briefing. “We have to work further on benefits and costs of CBDC implementation first.”

He said the report is aimed at brainstorming and checking the legal and social effectiveness of CBDC from a broad perspective. Further studies on the impact of CBDC realization at the BOK level will continue in a more detailed way, he added.

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