Central Bank’s Stance on Bitcoin

Korea’s central bank has kept a negative stance about bitcoin’s development into non-legal currency.
Korea’s central bank has kept a negative stance about bitcoin’s development into non-legal currency.

 

The top official of Korea’s central bank expressed doubts about the possibility of bitcoins developing into non-legal currency.

The Bank of Korea (BOK) Governor Kim Choong-soo on December 12 said at a press conference that although it is hard to talk about the future of bitcoins, it may be difficult for bitcoins to develop into non-legal tender, given its limited acceptability. He added that it is questionable to see bitcoins as currency due to its high volatility.

The BOK is preparing to write a report on whether bitcoin can become a means of payment and settlement, but it has kept a negative stance about such a possibility.

France’s central bank has warned against the use of bitcoins due to its high volatility. China also recently banned financial institutions from trading in bitcoins. 

Korean financial authorities including the BOK have said they would closely monitor any possible money laundering and violation of real name transaction laws resulting from using bitcoins. 

A Paris Baguette bakery in Incheon City has recently started to accept bitcoins, the first offline businesss to do so in Korea. 

Bitcoin was invented in the wake of the global financial crisis in 2008, and has been exchanged online via a peer-to-peer payment network. The virtual money recently received a global spotlight after former Federal Reserve Chairman Ben Bernanke said it may become a future possible means of exchange.

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