- Central banks being proactive as no one wants to be left behind
Bank of Korea (BOK) is stepping up the development of its central bank-issued digital currency by hiring experts, suggests local media reports.
The central bank is looking for a PHD level specialist who will be in charge of the digital innovation research and payment department.
The team will study the underlying technology blockchain and the design, implementation, and operation of payment systems using distributed ledger technology.
Though the officials are firm that they aren’t building a CBDC some speculate they are indeed hiring for its development.
“There is no change in the existing position that there is no need for issuing CBDC for the time being,” an official from the Bank of Korea’s Digital Innovation Research Group said. “This hiring does not presuppose the possibility of issuing CBDC.”
Back in October, the People’s Bank of China (PBoC) started hiring for more tech professionals with expertise in computing, cryptography, micro-electronics, and econometrics to explore the research and development of its central bank-backed digital currency.
No Hurry to catch up
Last month, reports were that the Bank of Korea has no immediate plans to issue a CBDC. An official in charge of the digital payment research at the BOK said there is no need for a government-backed digital currency as people aren’t feeling any difficulty in making transactions with the current payment methods.
“We do not have to be in a hurry to catch up with the latest trend whose security and stability have not been confirmed,” the official added.
These sentiments echo the comments made by the US Federal Reserve that sees no need for a CBDC in the next five years.
Everyone joining in gradually
In the past few weeks, French’s central bank has also come forward with its plan to develop a digital currency and launch before the end of the first quarter of 2020.
Such a currency according to Bank of France governor Francois Villeroy de Galhau will help “preserve the trust in the financial system.” This he said would be beneficial to the whole Eurosystem and could also lead to to an ‘e-euro.’
The Reserve Bank of India’s governor Shaktikanta Das also shared that it is also exploring the issuance of a CBDC and that discussions are held with other government and central banks about it.
There is no knowing if any of the central governments would actually come up with their digital currencies in the near future but one thing is for sure no one wants to be left behind and are taking a proactive approach to keep ahead.