Financial institution of Korea’s Rhee ‘not so positive’ about digital currencies

SEOUL (Reuters) – South Korea’s central financial institution governor Rhee Chang-yong mentioned he turned sceptical of the advantages of latest applied sciences associated to Central Financial institution Digital Currencies (CBDC), after latest occasions within the cryptocurrency market.

“If I narrowly concentrate on the expertise of blockchain and new applied sciences associated with crypto, stablecoin, and DeFi (decentralised finance), I’m not so positive whether or not we’re seeing the advantage of this technological improvement lately,” Rhee mentioned on Friday at a central banking convention in Thailand.

“I used to be extra optimistic earlier than, however after seeing the Luna, Terra, and now the FTX points … I do not know (if) we’ll see the true advantage of this new expertise, not less than for financial coverage,” mentioned Rhee, a panelist at a session on digital foreign money.

TerraUSD, a so-called stablecoin that was as soon as among the many prime 10 cryptocurrencies globally by market worth, broke its 1:1 peg to the U.S. greenback final Might, plunging in worth along with its paired token Luna and sending the crypto market right into a turmoil.

The market noticed one other rout final month, after one of many world’s largest crypto exchanges FTX filed for chapter, with crypto lending firm BlockFi following go well with.

(Reporting by Jihoon Lee; Modifying by Clarence Fernandez)

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