Bank of Korea confirms that its not planning to launch their own digital currency. They think this adoption would only lead to complications due to financial stability concerns. A “wait-and-see” perspective is the bank’s approach towards a central bank digital currency (CBDC).
Policymakers are still planning to strengthen their CBDC issuance research. BOK researchers published a study which modeled about how a cryptocurrency national coin could affect the liquidity of commercial banks. According to the bank, this direct public access to cryptocurrencies may decrease the deposits and reserves of banks and may eventually lead to a cash shortfall.