The issue of central bank digital currency (CBDC) is becoming a hot topic of discussion among several governments. Now, the government of South Korea is seeking better technologies that can effectively lead to the creation of their state-owned CBDC dubbed e-KRW.
Recently, the South Korean Finance Ministry announced imposing a 20% tax on cryptocurrency earnings. Curiously enough, the decision comes a couple of days before the announcement concerning the testing of the digital won. Is this a way to push people away from cryptos?
The health institutions in South Korea are using every available tool to fight Coronavirus disease. The most recent technological alternative is using a blockchain app system to track Covid-19 contacts in different parts of the country.
South Korea is known for its friendly stance on innovations including cryptocurrency. The country has even announced plans for releasing their own CDBC dubbed the digital won. However, they also show support to businesses dealing with other digital currencies.
The Political Affairs Committee of South Korea’s National Assembly has informed the Financial Services Commission (FSC) on numerous attempts of hackers to break into the country’s financial institutions. Cryptocurrency exchanges became the main target.
The South Korean government is actively adopting disruptive innovations including blockchain and distributed ledger technology (DLT) within various industries. It seems the country wants to follow in the footsteps of Japan and Switzerland to become a global tech hub.
The Bank of Korea established an advisory group to revise the legislative framework before the launch of the digital won. Despite their CBDC will more resemble a digital version of fiat currency, it is obvious that the existing financial legislation should be adjusted to the circulation of a new digital asset.