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South Korean Private Banks Explore Alternatives To Private Stablecoins And CBDCs

Press Releases Crypto News Bitcoinist South Korean Private Banks Explore Alternatives To Private Stablecoins And CBDCs

In South Korea, numerous private banks are actively researching tokenized deposit technology as a viable alternative to both private stablecoins and central bank digital currencies (CBDCs). Top banks in the region have shown considerable interest in certificates of deposit (CDs)- which refer to tokenized bank deposits that are placed on the blockchain.

CDs serve as a modernized alternative to conventional paper-based notes and deposits without causing any disruptions to the existing banking system. Additionally, utilizing CDs involves adhering to the same rigorous identity verification standards as any other traditional bank service.

According to reports, Hana Bank and Woori Bank, both private enterprises headquartered in Seoul, have demonstrated a keen interest in exploring these certificates of deposit tokens.

Hana Bank has expressed its intention to conduct research on CD tokens. On the other hand, Woori Bank’s research department has already released a report focusing on these tokens.

Both Hana Bank and Woori Bank are delving into the concept of stablecoins, however, they are approaching it with a modern perspective, aiming to address any potential disadvantages associated with traditional stablecoins. Referred to as the tokenized form of money, they view it as a promising alternative to both CBDCs and stablecoins.

CDs Might Be More Promising Compared To Stablecoins And CBDC

In Woori Bank’s recently published report focusing on deposit tokens and CBDCs, CD tokens were perceived as stable from the bankers’ perspective. According to a senior banker, the reason behind the perceived stability of CD tokens is that they do not deviate significantly from the current banking system.

Notably, both Hana Bank and Woori Bank, the banks mentioned earlier, are actively participating in a proof-of-concept test for a CBDC co

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Author: anushsamal

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