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South Korea Would Soon Have a Central Bank Digital Currency

A recent panel discussion on Wednesday at Deconomy event held in Seoul, South Korea saw an announcement about the country getting a central bank digital currency (CBDC) which would be going live in 2018.

According to the global banking consortium and distributed ledger software startup R3’s research director, Anthony Lewis,

“For wholesale use (of CBDC), I think we are looking at this year. We have had conversations with central banks who have mandates to fix certain payment problems, and one solution they look to is a blockchain type of platform”

Lewis, however, clarified that the move doesn’t mean that the consumers would have a brand new payment choice which would function like bitcoin or ether in effect immediately. Rather, he projected a cryptocurrency of that sort would only be used by a few financial institutions, to begin with.

This way, a system such as that would likely be used only in certain situations specific to the idea. Situations like disaster recovery could be highly benefitted from the idea. Lewis added later, addressing the issue of system failures,

“Don’t make your secondary (decentralized) system look like your primary (centralized) system. Otherwise, if a primary system goes down in an attack, then all the attackers need to do is just to play the same trick. Then it’s not resilience, it’s just another IP address to attack.”

While many other panelists weren’t much optimistic about their projects—not as much as Lewis was—they certainly did agree on a few points.

The global Central Bank Digital Currency lead at IBM, Stanley Yong, said that he believes that the blockchain system would best be applied to banking—commercial banking to be specific. According to Young,

“If it issues cryptocurrency to millions and billions of citizens, it will have to hold all these individual accounts, which inherently increases the market and credit risks”

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Syed Ali Mudassar
It was when he was pursuing his graduation in Computer Science that he found his flair for writing about new and existing technologies. He likes researching about technologies and how they could help people. Currently, he works as the Content Manager at CoinFrenzy, a leading blockchain news, and media publication website.