South Korean cartel enters Bitcoin remittance market

Major South Korean conglomerate Dongbu Group to enter Bitcoin remittance market
28 August 2017   1073

Dongbu Group, a large South Korean conglomerate, producing industry, chemical, shipping, insurance and financial products, has announced a partnership with Bitcoin remittance service provider Sentbe in order to enter the Bitcoin remittance market. The move follows the legalization of “micro” Bitcoin remittances by the Korean government.

Dongbu Group announces partnership with Sentbe Image Credit: news.bitcoin.com

As reported, Dongbu Group is collaborating with Sentbe through its savings bank subsidiary, the Dongbu Savings Bank. On top of that, according to an official of the savings bank, a Memorandum of Understanding (MOU) was already signed by the partners to prepare for the fourth industrial revolution era.

We have been working on this business alliance to prepare for the fourth industrial revolution era under the traditional savings bank business.
 

An official from the Dongbu Savings Bank

“This MOU is aimed at securing joint business opportunities by exploring new business models based on new technology and expertise of the WSBI overseas affiliate network,” the announcement details.

Thus, the new law legalizes Bitcoin foreign exchange transfers for small sums. 

Sentbe is in the process of being approved as a “micro-foreign remittance business,” the bank reveals, adding that it is preparing to expand the market of micro-foreign remittances.

Experts Ask China Don't be in Rush For Own Crypto

Ex deputy chairman of the Bank of China said the CB should take part in the development of international regulation of crypto assets firstly
27 January 2020   123

China should strengthen cooperation with other countries to regulate the cryptocurrency industry, and not accelerate the development of its own digital currency, experts say. It is reported by the South China Morning Post.

So, the former deputy chairman of the People’s Bank of China, Zhu Min, noted that the central bank, which is developing a digital yuan in many ways as Facebook’s Libra response, should first of all take part in the development of international regulation of such assets.

Ba Shusong, chief China economist for the Hong Kong stock exchange, also believes that monitoring digital currencies requires a system that is controlled from different angles, as they have the potential to change the global financial system.

You would need to first improve the regulatory framework for [financial] technology. There is a need for global cooperation for an alternative regulatory framework.

 

Ba Shusong

Chief China economist for the Hong Kong stock exchange

 

Many fear that the popularity of Libra could strengthen the dominant role of the US dollar. At the same time, Deutsche Bank analysts believe that the digital yuan will undermine the primacy of the dollar in the global financial market.

Hiromi Yamaoka, the ex-head of the Bank of Japan supervisor of payment and settlement systems, also emphasized that the upcoming launch of Libra has caused competition among central banks seeking to make their currencies and services more attractive.

Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology.

 

Hiromi Yamaoka

Former head of the Bank of Japan’s (BOJ) division overseeing payment and settlement systems