Several private banks in South Korea are exploring alternative technologies to both private stablecoins and central bank digital currencies (CBDC).
Some banks in Korea have stepped up their activities on stablecoins and CBDCs. While Hana Bank plans to research the certificates of deposit tokens, Woori Bank’s research department recently published a report on the tokens.
Banks’ interest in digital assets on the rise
Hana Bank and Woori Bank, both private companies headquartered in Seoul, are showing interest in “certificate of deposit” tokens (CDs), according to a report from News Korea. CDs are tokenized bank deposits put on the blockchain that replace traditional notes and deposits without disrupting the existing banking system. CDs also require authentication to the same standards as any traditional bank service.
While Hana Bank plans to research CDs, Woori Bank’s research department recently published a report on the tokens. Bankers, on the other hand, describe this situation as having very few disadvantages of CDs. As the report points out, the interest in them stems from the concern posed by stablecoin failures in 2022 among financial regulators. In addition, an anonymous authorized banker named in the report “CDs are perceived as stable from the banks’ point of view as they are not significantly different from the current system.” said.
