The Bank of Korea is said to pitch against the creation of the country's own digital coin – CBDC, as it can affect the performance of traditional monetary solutions.
The Bank's chairman noted that such quick launch of the coin can have a huge impact on the market and society. Moreover, he added that it can depress the monetary policy in the country, with possible increasing instability in the financial market as digital currencies don't currently constitute money.
"We reviewed the possible feasibility of digital currencies as currency; however, our thoughts are that digital currencies have been exposed to various categories of risk associated with credit, liquidity and legal management," as reported local media citing Kwon Oh-ik, a researcher at the bank's economic research institute.
He also added that for now, they determined that the cryptocurrencies do not work as traditional money. Moreover, the regulator wants to remain the only authority which may control financial environment of lenders and consumers.
"It's desirable that the BOK is the only entity to entirely control issuing money," the news report reads.
However, the Central Bank has reportedly stated that the national cryptocurrency may upgrade the banking in the country. This means that the regulator believes the launch is possible, but at first, CBDC must pass massive trials.
Notably, it was reported earlier that Korea's Supreme Court determined cryptocurrencies as assets.