South Korean Central Bank to Form Digital Currency Task Force

The Bank of Korea is in the process of forming a task force to study a central bank digital currency (CBDC).

The prospect was revealed by the regulator on Friday on a report named “Monetary Policy 2020.”

“The Bank will continue to build on the research into new innovations such as distributed ledger technology, crypto assets, and CBDC, and play an active role as overseer to enhance security of the Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term systems,” the report stated.

The central bank is also looking to on-board experts in the field for its new research group.

“The Bank will organize a task force dedicated to CBDC research and recruit additional experts,” it added.

This came just days after an official from the central bank revealed that it has no plans to launch a digital currency. However, current development is providing positive signals from the part of the bank.

The rise of CBDCs

Lately, many central banks have dived into the idea of launching a CBDC.

Central banks of Switzerland, Canada, and Singapore, all have started exploring the use of digital currencies and their research efforts underway. China, however, appears ready to be the first to launch a government-backed cryptocurrency, with plans to have its own coin up and running later next year.

Apart from large economies, tiny island nations are more inclined towards the prospect. Earlier today, Finance Magnates reported that the central bank of the Bahamas is ready to pilot its CBDC from today.

Meanwhile, the South Korean regulator also detailed that it would consult with global regulators as there are many challenges with digital currencies.

“It will actively engage in discussions with the BIS and other international organizations, keeping an eye on CBDC development at other central banks,” the report added.