Officially overweight central bank digital currency (CBDC), South Korea's central bank announces the establishment of a CBDC working group

The Bank of Korea (BOK) announced on Friday that it will form a working group dedicated to the central bank's digital currency (CBDC) to better understand crypto assets that have attracted the attention of central banks around the world.

beautiful_granite_exterior_of_the_bank_of_korea_museum

The Bank of Korea said in its "Monetary Policy 2020" that it will continue to build on research on innovations, such as distributed ledger technology, crypto assets and CBDC, to play an active role in supervisory agencies to improve the security of settlement systems .

The central bank also said it would recruit more CBDC experts.

The Bank of Korea said in the report:

"We will actively discuss with the Bank for International Settlements (BIS) and other international organizations, and pay close attention to the development of CBDC of other central banks."

On December 10, the Bank of Korea announced job vacancies for digital currency experts.

In addition, Hong Qingzhi, the head of the country's central bank's payment and settlement system department, said on December 18 that the Bank of Korea "is considering the issue of digital currencies."

This has led experts and the media to believe that the Bank of Korea has begun to develop the technology needed to issue a CBDC.

However, the central bank is cautious about the CBDC, denying rumors that it will launch digital currencies soon.

A Korean Bank spokesman said:

"We just plan to strengthen our efforts on CBDC research."

Since Facebook announced its Libra cryptocurrency project and the People's Bank of China has decided to issue digital currency in fiat currency, other central banks in major developed countries have also shown interest in CBDC.

The French central bank's governor, Francois Villeroy de Galhau, said the bank will begin testing CBDC in the first quarter of 2020.

Reuters quoted the European Central Bank as saying:

"If industry efforts are insufficient to develop innovative and efficient pan-European payment solutions, they can meet their social needs by issuing central bank digital currencies."

The US Federal Reserve released job vacancies in November to hire new managers to study digital currencies.