Bank of Korea Governor Lee Chang-yong attends a seminar hosted by the Central Bank of Georgia
“The potential of CBDC is huge in international payments… regulation must be harmonised”
(Tbilisi = Yonhap Infomax) Reporter Kim Jeong-hyun = Bank of Korea Governor Lee Chang-yong said the need for a CBDC (central bank digital currency) comes from the programmability of currency.
Governor Lee attended the ADB (Asian Development Bank) seminar hosted by the Central Bank of Georgia held on the 2nd (local time) in Tbilisi, Georgia under the theme ‘Cooperation for the development of the fintech industry’ and said, “In a a country with a developed fast payment system like Korea, the citizens “It is not easy for people to understand why CBDC is needed,” he said.
Governor Lee said that the Bank of Korea was already conducting CBDC tests before participating in the Agora project, and he identified the programmability of the currency as one of the main needs.
The Agora Project is a project promoted by the Bank of Korea in collaboration with the Bank for International Settlements (BIS), the five major reserve currency countries (USA, UK, Japan, France, Switzerland), and Mexico to improve payments cross border. . It aims to revolutionize the global financial system to enable seamless transactions across borders using tokenized deposits and institutional CBDC.
“Korea has run its own CBDC pilot before,” said Governor Lee, “One of the important questions is why citizens need a CBDC because everything is done so easily in a country like Korea has an advanced fast payment system.” don’t understand,” he began.
“The only answer we found was that currency programmability is something new,” he said “We decided to shift our focus from retail projects to wholesale CBDC projects to explore programmability.”
Governor Lee also explained the overview of wholesale CBDC.
He said, “Basically, the Agora project proposed a two-tier system by introducing tokenized deposits,” adding, “Banks issue tokenized deposits, and central banks provide wholesale CBDC, which is the source of tokenized deposits.”
He also added, “Personally, I think tokenized deposits are stable coins issued by banks.”
In addition, he explained, “The advantage is that both systems can be maintained at the same time so that non-banking organizations can participate in the platform.”
Governor Lee said that in order to facilitate international payments in the Agora project, regulations must be resolved amicably.
Governor Lee said, “I believe the potential to be gained through CBDC is greatest in cross-border transactions. The Agora project will need to harmonize regulations, and Korea will be able to contribute by showing its perspective as a zero-currency country back. .”
Bank of Korea Governor Lee Chang-yong speaks at an ADB seminar hosted by the Central Bank of Georgia captured from the Facebook page of the Central Bank of Georgia
jhkim7@yna.co.kr
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This article was published at 21:12 on the Infomax financial information terminal.
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