The Central Bank of Korea (BoK) announced yesterday that it is looking into using cryptocurrencies and other blockchain-based solutions in a push for a cashless system.
In a report published on March 30 (2017 Payment Report), the bank revealed that it has been conducting research in partnership with overseas banks. This research covered the use of blockchain for payments. Prior to this research, the bank had announced its intention to study the effects of cryptocurrencies on the overall financial system in the country – with the aim of possibly establishing a cashless system.
Aside from ICOs, BoK is dealing with issues such as money laundering and cryptocurrency taxation. It is also working with foreign governments and financial institutions to determine global standards for cryptocurrency.
A project to demonstrate the cashless system was launched in April, where several “marts” and convenience stores participated. During the trial period, customers paid for their purchases via a prepaid electronic payment system.
The South Korean government is considering phasing out physical money and have a cashless system by 2020.