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Bank of Korea Does Not recognize Bitcoin as a currency, Blamed for being Cryptocurrency Ignorant

Oct 27, 2017 Posted /  1841 Views

Bank of Korea Does Not recognize Bitcoin as a currency, Blamed for being Cryptocurrency Ignorant

Bank of Korea’s Stand on Bitcoin

The governor Bank of Korea Mr. Lee Joo-yeol told the South Korean Parliament that he does not recognize Bitcoin and other cryptocurrencies as a currency. This was during a parliamentary audit of the Bank by ordered by the National Assembly of the Republic of Korea. Mr. Lee carelessly asks the house if it was possible to consider virtual money a currency. However, Mr. Lee agrees that a regulation is appropriate for Bitcoin and other cryptocurrencies. But he stressed that there is no need for such regulations currently. Mr. Lee added that a digital money could be required for interbank transactions and transactions within the Bank of Korea itself.

The Banks take on Bitcoins and other cryptocurrencies is a failure to go by advancement in financial Technologies. Most countries are opening up for Bitcoin and cryptocurrency keenly analyzing its benefits and assessing all the risk factors associated with it.

Lack of Knowledge on Bitcoin

The Bank of Korea has not put emphasis on acquiring enough information on Bitcoin and how it could be helpful to the economy. Members of parliament criticised the Bank for failing to do its role of keeping updated with the latest development in financial MP Song Young-Gil cited the research on Bitcoin being done by the central Bank of other countries and blamed the bank for giving wrong figures to parliament regarding Bitcoin usage. Hon. Song said South Korea has more than 1000 Businesses dealing in Bitcoin and Ethereum yet the Bank gave a very small figure. He highlighted the need for a proper Research on digital currencies and Virtual money so as to prevent the country from losing future markets. Mr. Lee finally came to Consensus with the lawmakers promising that the Bank will do more research on digital currencies including Bitcoin and take appropriate steps in the future.

Level of Bitcoin Activity in South Korea

South Korea is the home of the world’s largest phone Manufacturer Samsung and has the world’s highest speed internet. This signifies the level of technological development in the country but sadly it seems like it’s major Bank is rather lagging Behind in terms of vital research for the country. With about 3 Bitcoin ATMs and 11 Bitcoin exchanges south Korea Bitcoin usage is still a little low compared with that of other countries. However south is the second largest ethereum market accounting for about 17% of all trades by march of this year. This clearly indicates the need for the Central Bank to pay attention on Cryptocurrency in South Korea. Many people according to message threads in online forums Believe that technological advancement, especially in Fintech, is a hope for a country to remain at a top level or reach another Heights.

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Tags: bitcoin Regulations korea bank of korea

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