Korean Banks Research CBDC and Stablecoin Alternatives
BITmarkets Team
Jul 25, 2023
Multiple private banks in South Korea are exploring the possibility and feasibility of tokenized deposit technology as an alternative to stablecoins and central bank digital currencies (CBDCs).
A report from Maeli Business News Korea reveals that Seoul-headquartered Hana Bank and Woori Bank are interested in the so-called “certificate of deposit” tokens (CDs).
CDs are tokenized bank deposits situated within the blockchain and hence replace traditional notes and deposits. They require the same standards of identity verification as any customary banking service.
Anonymous senior bankers had this to say about CD tokens:
“CD tokens are perceived as stable from the banks’ perspective since they do not differ significantly from the current system.”
Not only that, but CDs are potentially compatible with CBDCs, with both private banks looking to participate in a proof-of-concept test for a CBDC by the Bank of Korea.
The report highlights that the interest for CDs stems from the anxiety that comes with stablecoins, as some have evidently failed in 2022 due to regulatory and/or stability concerns.
Sources:
https://cryptonews.com/news/south-koreas-hana-bank-work-cbdc-stablecoin-alternatives.htm
https://watcher.guru/news/south-korea-top-banks-explore-cbdc-stablecoin-alternative
https://pulsenews.co.kr/view.php?sc=30800018&year=2023&no=562428
