Bank of Korea: Cryptocurrency Costs Unlikely to Crowd Out Fiat Currencies
South Korea’s central bank has published a new working paper analyzing a dual-currency regime by pitting cryptocurrencies against traditional fiat currencies. Penned by economists and academics from the Bank of Korea and Seoul’s Hongik University, the working paper, titled ‘Crowding out in a Dual Currency Regime? Digital versus Fiat Currency’, [PDF] was published earlier this week. “[W]e examine the impact of a privately issued digital currency and fiat currency using the simplest framework, with which we may derive the most straightforward implications,” reads the introduction of the....
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A new report from the SWIFT Institute has found that fiat currencies are more likely to crowd out digital currencies such as bitcoin. The paper, Virtual Currencies: Media of Exchange or Speculative Asset? [PDF] analyses the dynamic relationship between virtual currencies, such as bitcoin, and fiat currencies. The research looked at whether or not the design and the size of virtual currencies could pose an immediate risk to monetary, financial or economic stability. The paper found that fiat currencies are more likely to crowd out virtual currencies and that the design and size of virtual....
Some legal changes would be needed before a potential central bank digital currency launch in South Korea, research indicates.
South Korea’s monetary policy regulator is taking steps to create its own digital coin. Bank of Korea is now looking for a technology provider to develop a test environment for the project. The news comes after major commercial banks expressed skepticism over their cooperation with domestic cryptocurrency exchanges. Central Bank of Korea to Launch Pilot Platform for CBDC The tech supplier will be chosen through an open bidding process, Bank of Korea (BOK) announced Monday. Its task will be to set up a pilot platform for the launch of the South Korean central bank digital currency....
The ChronoBank ICO will allow investors to buy into the platform by investing in Time tokens. ChronoBank, the time-based cryptocurrency platform for short-term recruitment industry is all set to start a crowd sale. The revolutionary blockchain-based recruitment platform has set the crowd sale price at 1 bitcoin for 100 Time tokens. Anyone investing in these crypto tokens during the pre-sale will receive a share of the Labor Hour cryptocurrency as soon as the platform is launched. The Labor Hour cryptocurrency will be the mode of value exchange on the ChronoBank network. It is a....
Asia's reputation as an international hotspot for bitcoin news is growing. While China's central bank caused a major stir with yesterday's statement on digital currencies, South Korea's central bank, the Bank of Korea (BOK), this week provided statements of caution and optimism. The BOK released a report on bitcoin on 3rd December, according to BusinessKorea, which pondered the measures required to "open the virtual currency to the public". It may not sound like much, but the BOK had previously ruled out any possibility that bitcoin could become a regular currency. However, this report did....