Bank of Korea (BoK) opposed the idea of launching its own cryptocurrency (CBDC), which, according to the regulator, could reduce the effectiveness of traditional instruments of monetary policy. This reported by Coindesk..
According to BoK, the sudden issue of CBDC into the economy "will cost society dearly and will do moral harm", and will also have a negative impact on monetary policy and, possibly, will cause instability in the financial market.
In general, the regulator believes that "digital currencies do not function like money."
Our thoughts are that digital currencies have been exposed to various categories of risk associated with credit, liquidity and legal management. [...] It's desirable that the BoK is the only entity to entirely control the issuing of money. Technology improvements don't mean private sectors will be allowed to have the rights for money issuance. If this happens, the BoK should regulate them but properly.
Also, BoK said that it wants to retain a monopoly on the implementation of monetary policy.
At the same time, the Central Bank does not reject the possibility of issuing CBDC in the future. The regulator recognizes that cryptocurrencies can revolutionize the banking system. But before giving digital assets the full right to life, they must be thoroughly tested.