The Governor of the Bank of Korea, Rhee Chang-yong, emphasized the "urgency" for central banks to consider the introduction of central bank digital currencies (CBDC) in response to the challenges posed by stablecoins. Stablecoins like tether (USDT) and USD Coin (USDC) have gained widespread usage but often lack the stability implied by their name. Rhee expressed concerns that their adoption could diminish the role of central bank money and hinder the effectiveness of monetary policies. The Bank of Korea is actively working on a wholesale CBDC pilot and exploring its application in tokenizing real-world assets.
CBDC Landscape: A Global Shift in Progress The push for CBDCs extends beyond Europe and South Korea. Central banks representing one-fifth of the world's population are expected to issue their digital currencies in the next three years, according to a Bank for International Settlements survey. While some projects gained momentum around 2019, stablecoins have reinvigorated central banks' interest in digital currencies. Despite challenges and criticisms, CBDCs are increasingly seen as a crucial component of the evolving global financial landscape. Source: Finance Magnates
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