The Bank of Korea is set to announce details of an ongoing study into cryptocurrencies next month that includes a plan exploring the possibility of issuing a central bank digital currency (CBDC). In a statement on Wednesday, the Bank of Korea confirmed it was in the “early stages” of studying cryptocurrencies and the implications of issuing them as a central bank, the Korea Times reported.
The monetary authority stressed it is currently ‘premature’ to elaborate on whether it would issue a central bank digital currency presently while insisting that it is keeping an eye on other endeavors by counterparts globally. Notably, the revelation follows a recent announcement by the BOK wherein the central bank confirmed it is considering blockchain use cases and cryptocurrencies for its ‘cash-free’ society pilot. According to a local report, the bank has already begun exploring potential uses of blockchain technology in joint-research with other central banks to apply the decentralized technology for payment rails.