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Bank of Korea recruiting experts for CBDC research

Debarati Ghosh by Debarati Ghosh - 10:53 AM Dec 27, 2019
Bank of Korea recruiting experts for CBDC research

Bank of Korea, the Central bank of South Korea is recruiting experts to research digital currency. The bank will be creating a task force that will be dedicated exclusively to the CBDC (Central Bank Digital Currency) in the upcoming year.

Bank of Korea – Monetary Policy 2020

The news is mentioned in the banks “Monetary Policy 2020” published on December 27. The bank stated that it will continue to build on the existing research into distributed ledger technology, crypto assets, and CBDCs and to play “an active role in overseeing and enhancing the security of payment and settlement systems.” To research CBDCs the bank intends to hire additional experts from the same field. Reportedly, earlier in December, BOK posted a job listing for Digital Currency experts recently. However, an unnamed official stated that the hiring doesn’t necessarily imply the issue of CBDCs. BOK has previously mentioned there is no current need for a CBDC. In fact, according to the institute, a newly issued CBDC could harm the liquidity in the commercial banks. Along with the newly hired task force, BOK will actively involve with the Bank of International Settlements (BIS) and with other international institutes. And that will help BOK to have a alongside view of CBDC developments in other central banks. The bank also mentioned that it plans to use the BIS’ “Principles for Financial Market Infrastructures (PFMI)” to validate assessment principles for improving the domestic financial systems.

About PFMI

PFMI is a framework that BIS has established. These are the international standards for financial market infrastructure such as payment systems, securities settlements, central securities depositories, central counterparties and trade repositories. The PFMI are part of a set of 12 key-standards that the international community considers necessary to strengthen financial stability. CPMI and IOSCO (International Organization of Securities Commissions) have issued the PFMI standards.

CBDC across the Globe

Currently, many countries including China, Singapore, and Thailand are researching CBDCs. According to a BIS survey of 63 central banks done in 2018, the majority of the banks were planning or researching CBDCs. In 2019, Official Monetary and Financial Institutions Forum and IBM conducted the same kind of survey with 23 central banks resulting in the same. Central Bank of Russia is also testing its own CBDC. France is soon going to launch its CBDC in 2020. Turkey too will be launching its Digital Lira soon.  

About The Author
Debarati Ghosh

Debarati GhoshDebarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.

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