South Korea’s Central Bank weighs to launch deposit tokens on public blockchains To better compete with Stablecoins, local media reports.
Lee Jong-Ryeol, Deputy Governor of the Bank of Korea (book), who spoke at the eighth blockchain Leaders Club in Seoul in Seoul.
Jong-Ryeol described the new symbol as “a type of Stablecoin issued within the digital currency system built and operated by Bank of Korea.” This would make it a centralized symbol under the bank’s control.
However, Central Bank man added that a book weighs to integrate the token with Stablecoins issued by the private sector. The Central Bank says that the token can enable it to “safely and healthy develop the digital currency system from a national perspective,” he added.
Jong-Rryeol was scarce on details as if the bank would restrict access to tokens and if they were available to users outside South Korea. Of course, if used on a public blockchain, the central bank would allocate control of the tokens and they would act freely across borders. In such a scenario, tokens would be more like Stablecoins, but with the book as an issuer. This would make the bank the first in the world competing with private issuers as Circle and Tetherthat dominates the market.
While the project has confused many experts, who are still uncertain about how it will be implemented, it is little surprise that the top bank is investigating alternatives in response to the emergence of United States Dollar-Pegged StableCoins.
As one of the largest digital asset markets, South Korea has registered a parabolic increase in the use of Stablecoins in the ‘Crypto’ Trading and Beyond. A local withdrawal revealed The fact that the Koreans transferred 27 trillion ($ 20 billion) in Stablecoins during the first quarter to offshore addresses and accounted for half of the total digital asset value.
With Stablecoin’s still an emerging area for most central banks, a book is among those who rush to design a solution that makes it possible to prevent crime and implement monetary policy. Some, such as the European Union, have banned the use of Stablecoins that are not licensed and regulated in the region. Others, such as the United Kingdom and the United Arab Emirates, demand that Stablecoin issuers receive payment licenses and follow industrial standards.
South Korea’s response is still the most unique as it would make a central bank directly against the private sector. But once again the Israeli central bank has proposed Pay interest at its central bank Digital Currency (CBDC) to directly compete with commercial banks.
Talk to a news outlet, Peter Chung noted that it is still unclear how book intends to run the proposed system. Chungs Presto Labs runs an algorithmic trading platform.
“… the way to protect monetary sovereignty is not by tipping with token design or network architecture, but by healthy monetary and fiscal policy,” he said.
At the same time, the Democratic Party in Korea (DPK) is increasing for a Vann-Peggad Stablecoin. The party has
targeted digital assemblies With promises to better regulation in the management of the June 3 election, including local Stablecoins to compete with USDT and USDC, which dominates the Korean market.
Thailand Eyes ‘Crypto’ payments for tourists
In Thailand the government plans to enable Digital asset payments for tourists who followed a limited trial earlier this year.
The Thai Ministry of Finance revealed that it works with a plan that allows tourists that keep digital assets to make direct payments via debit and credit cards while buying local goods and services. The local merchants would receive the payments in the Thai baht and would not have to know that digital assets have been involved.
The new initiative is considered by the Bank of Thailand (bot) but has not yet received a green light. It would also require some important infrastructural changes, acknowledged the ministry.
“In some foreign countries it is already possible to use crypto for purchases by linking it to credit card,” Finance Minister Pichai Chunhavajira abandoned in his speech at a local financial event.
“This approach can be immediately adapted for Thailand, provided that the support systems are in place, but it will not involve our domestic currency.”
In January Pichai announced A pilot program that enabled foreign tourists to pay in digital currencies in Phuket, the country’s most important tourist destination.
Watch: Blockchain is much more than digital assets
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