South Korean Central Banks Adopts Blockchain and Cryptocurrency to Obtain Cashfree Society

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South Korean Central Banks aims for Cashfree society by implementing Blockchain and cryptocurrency procedures

The Bank of Korea (BOK) and South Korea’s central bank recently announced that it is considering cryptocurrencies and blockchain applications for its project for a “cashless society,” local news TokenPost reports May 1.

TokenPost stated yesterday that BOK announced the official launch of its cash-free society pilot in its “2017 Payment Report.” In the report, it is mentioned that the bank has begun exploring all the uses of blockchain and cryptocurrency that are possible.

The bank also has instituted an association for researching digital currency and examining possible effects of cryptographic money on the complete financial system.

The primary goals of the project are customer liberty and decreasing the cost of assembling physical currency. In 2016, South Korea reportedly spent KRW 53.7 bln ($47 mln) on dispensing physical currency.

The government also intends to use the initiative as a means by which to open the underground economy, which is mostly cash-driven.

Kwak Hyun-soo, an analyst at Shinhan Investment Corp, said:

“It can open the underground economy, and thus enhance equivalence in taxation. The shoebox full of 50,000 won banknotes that you see in movies will fade into reality (with the progress of a cashless society).”

According to KoreaTimes, the South Korean government began thinking to phase out physical money in 2016 and prepared to become a “cash-free society” by 2020. In April 2017, the BOK started a coinless society trial, in which customers could place small change from transactions and put them on a prepaid or mobile card to use at convenience stores, discount stores, and department stores.

In January, inter-ministerial division on cryptocurrency policy rattled the South Korean public when the Ministry of Justice independently declared that it would forbid cryptocurrency trading. Following a petition, the Minister of Finance said that the government would not ban crypto trading, which was ultimately confirmed by the Minister of the Office for Government Policy Coordination in February.

Around a month ago, Coindelite reported a news that South Korean banks have denied exchanges conducted by Youbit. Korean Insurer denied South Korean Cryptocurrency Exchange Youbit’s insurance claim.

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