A digital currency created by
a central bank, called CBDC in English for short. Since it is made by the central bank using the blockchain technology used in virtual currency, its value does not rise or fall much, and the biggest advantage is that it can be trusted above all. A bill to allow the Bank of Korea to issue such digital currencies was introduced today (15th).
Let's take a look at Han Sung-hee's exclusive interview first and find out more questions.
One of the countries where
CBDC experiments have advanced is China.
More than two years ago, the central bank, the People's Bank of China, issued a digital yuan that can be used in 8 million stores.
With more than 100 countries considering issuance, the issuance of digital currencies by central banks is a global trend.
The Bank of Korea is also conducting a research project and preparing to issue a digital won. [Lee Chang-yong/Governor of the Bank of Korea: Why don't we offer an alternative so that the (cryptocurrency) industry can develop, and in that regard, we are actively considering a virtual currency issued by the central bank called CBDC.
This is the first time a bill has been introduced to back it up.
The key is to separate the digital won to be issued from the existing cryptocurrency.
If we define it as having the same nature as private virtual currencies such as Bitcoin, we want to prevent this because the Bank of Korea is subject to the same regulations as private operators.
[Kim Han-kyu/MDP lawmaker: I think (CBDC) will be quite useful because it issues won in digital form. Really, because it can function as a real virtual currency....]
It also included allowing the Bank of Korea to supervise the management of private virtual currencies, so-called stablecoins, which are exchanged one-to-one with won.
As stablecoins are written similarly to the existing won and can affect the currency volume, Han Eun can intervene and monitor the amount of circulation.
However, as the issuance of the digital won by the ROK could shake up the existing system of connecting central banks, private banks, and users, the debate in the National Assembly is expected to proceed cautiously.
reporter Han Sung-hee covered
Q. What is CBDC?
[Han Sung-hee: To put it simply, it is a virtual currency guaranteed by the central bank. CBDCs are highly safe and reliable because the central bank guarantees their value in fiat currency.]
Q. What will happen when CBDC is introduced?
[Han Sung-hee: The biggest change could be a complete change in the role of banks. Traditional bank deposits now run the risk of losing all your money if the bank fails, as is the case with Silicon Valley banks in the United States. But CBDC doesn't have to worry about that. And now, if you want to use a simple payment service, money basically goes back and forth through your bank account, and you don't have to do that. Another feature is that it uses blockchain technology, so all transaction records are recorded. Many crimes such as voice phishing are basically carried out through cash. It is hoped that it can do a lot to prevent these crimes, but it also means that the authorities can see all the transactions of individuals.]
Q. What are the overseas cases?
[Han Sung-hee: Currently, China, Europe, South America, and Africa are engaged in CBDC battles around the world. China already has more than 100 million users of the digital yuan at last year's Beijing Winter Olympics, requiring all arrivals from abroad to pay using CBDC, and the central banks of Russia and Japan will begin piloting digital rubles and digital yen from April 1 next month. In the United States, there has been a recent negative impact, or shouldn't there be a national consensus? There is some negative public opinion like this, but we are basically moving forward.]
(Video Editor: Park Ki-duk, CG: Lee Jae-joon)
[Exclusive] 'Digital King Sejong' Naona... CBDC Bill Initiative
A digital currency created by a central bank, called CBDC in English. Since it is made by the central bank using the blockchain technology used in virtual currency, its value does not rise or fall much, and the biggest advantage is that it can be trusted above all.