Bank of Korea Governor Urges Action on CBDCs
The governor of South Korea’s central bank, Lee Chang-yong, is urging action on central bank digital currencies (CBDCs), stating that they have become essential and cannot be delayed any longer.
The Bank of Korea has yet to make a decision on whether or not to issue a CBDC, emphasizing that it is a complex process that requires careful planning.
Speaking at the 2023 MOEF-BOK-FSC-IMF International Conference on Digital Money in Seoul, Chang-yong highlighted the importance of researching CBDCs due to the recent emergence of stablecoins. He expressed concerns about the stability of the system if stablecoins become widely used as a digital payment method.
Prioritizing Innovation in South Korea
During the same conference, Kim So-young, Vice Chairman of the Financial Services Commission, emphasized the need for regulations that balance investor protection and innovation. South Korea has recently enacted legislation to regulate virtual assets and ensure investor protection, which will come into effect in July 2024.
Hot Take: Bank of Korea Governor Calls for Swift Action on CBDCs
South Korea’s central bank governor, Lee Chang-yong, has made a compelling case for taking immediate action on central bank digital currencies (CBDCs). Speaking at an international conference on digital money, Chang-yong stressed the urgency of researching and developing CBDCs in response to the growing popularity of stablecoins. He expressed concerns about the stability of the financial system if stablecoins continue to gain traction as a digital payment method. This call for action aligns with South Korea’s efforts to prioritize innovation while ensuring investor protection through regulatory measures. It remains to be seen whether the Bank of Korea will move forward with issuing a CBDC, but the governor’s remarks underscore the importance of exploring this digital currency option without further delay.
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