On Monday, The National Assembly of the Republic of Korea organized a parliamentary audit of the Bank of Korea. Apparently within the hearing, governor Lee Joo-yeol declared that he cannot officially identify digital currencies such as Bitcoin or Ethereum as currency.
When asked “Is it possible to see virtual money as a currency?”, Lee responded with: “it is difficult to look at the example of the International Settlement Banks (BIS) in terms of money” – according to Yonhap News
Regulation is appropriate for it because it is regarded as a commodity. It is not a regulation at the level of money…It is not a situation for the Bank of Korea to take action at present.
This is a surprising declaration. Especially when South Korea is one of the most active countries in the cryptocurrency field, where Bitcoin is accepted by over 1,000 businesses.
Bank Of Korea – A Lack of Knowledge in the Cryptocurrency Field?
Song Young-gil – Democtratic Party lawmaker and a member of the National Assembly of Planning and Finance Committee – declared that there’s a lack of knowledge in the banking industry when it comes to Bitcoin and other cryptocurrencies. He said that the research conducted by banks on this sector “is poor” mentioning that there are over 1,000 companies that can use Bitcoin in Korea. Song stated that:
“Virtual currency and blockchains are important research subjects, if you neglect them, you can lose the future market. The bank should do more research in the future.”
Lee Joo-yeol agreed with him and promised that “The Bank of Korea will put more emphasis on virtual currency research”. It appears that Korea is starting to recognize the need of cryptocurrencies and sees it as the “future market”.
More and more banks should follow Song’s advice of researching the virtual currencies and the blockchains. With more and more banks learning about the blockchain system, we might come to a day when the banks will use it. Thus, an elimination of huge fees and waiting days for a money transfer will occur.