The Bank of Korea has published a document on legal issues related to the release of the state cryptocurrency. Earlier, the country’s Central Bank announced that it could issue digital currency in 2021.
According to the document, the Bank of Korea is calling for a review of laws that will ensure the successful operation of the state cryptocurrency in the future. The Bank of Korea has used the blockchain to conduct transactions as part of a nearly two-year trial that began back in April 2020 and will end this December.
The recently started testing of the distribution of the state cryptocurrency in 2021 represents the third phase of this project, which focuses on technological development and initial operational analysis in the first and second phases. The new document confirms the timing and scope of testing.
“The Bank of Korea is conducting an analysis of operational procedures for the deployment of the state cryptocurrency, as well as external consultations. This year we are going to launch a pilot system of the state cryptocurrency in a virtual environment and conduct tests to verify its functions and security. ”
In addition, the Central Bank of South Korea spoke about the motivation for the project and the potential benefits of the future digital currency:
“Moving from cash to digital currency could increase GDP by 3%. Digitizing currency will speed up money circulation and reduce service costs. It would also be an effective way of implementing negative interest rates, which would generally improve monetary management. ”
As a reminder, South Korea approved an income tax on cryptocurrencies last month. From 2023, individuals in South Korea will be required to pay 20% income tax if their cryptocurrency trading profits exceed 2.5 million Korean won.
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