Bank of Korea Wants to Use Blockchain and Cryptocurrency to have a Cashless Society
South Korean government is working towards the adoption of Cryptocurrency
“South Korea’s Central Bank will use Blockchain and Cryptocurrencies since it sees them having the power to allow societies become Cashless. This is in line with the government long-term plans since it has been trying to get rid of coins. There are other methods which have been suggested to them, but they want to go with cryptocurrencies.”
According to reports from TokenPost, the bank announced its official launch of the coinless society in their 2017 payment report tabled on first of May. The bank is said to be already exploring the use of cryptocurrency and Blockchain like the application of blockchain and passwords in payments. They have also established an organization to research cryptocurrency and analyze the possible effects of the crypto money on the financial system.
The main aim of this project is customer convenience and cost reduction during the production of the physical currency. It was reported that in 2016 the country had used 47 million dollars in issuing physical currency.
The government wants to use cryptocurrency to open the underground economy which is mainly driven by cash. According to Kwak Hyun-soo who is an analyst at Shinhan Investment corporation:
“Cryptocurrency can open the underground economy which would enhance equivalence in taxation. “
Korean Times reported that Bank of Korea started planning on the way to phase out physical money in 2016 as it planned to be a cash-free society by 2020. The country’s Central bank launched the first coinless society trial in April 2017 whereby customers would deposit small amounts from the transaction and put them in a prepaid platform like mobile cards and use them at convenient stores, department stores, and discount stores.
In January this year, there was confusion in the country after the South Korean Ministry of Justice said that it would ban crypto trading. There was a petition in the country which led to a statement from the Ministry of Finance stating that the country was not planning to ban crypto trading. The statement was later affirmed by the Minister of the office of government policy and coordination.
There has been a big push in South Korea for the adoption of cryptocurrency which is led by the country’s largest crypto exchange Bithub. The exchange is working hard with the aim of evolving into a bank-like business so as to make the use of digital currencies in daily life more intuitive.