Bank of Korea looks to hire crypto experts

The Bank of Korea is looking to hire digital currency and crypto-assets experts – but has denied it is preparing for a national cryptocurrency.

The successful candidates will be in charge of researching digital payment innovation and blockchain, according to local outlet edaily.co.kr.

But South Korea’s central bank was quick to pour water on speculation about a central bank digital currency (CBDC).

An official from the Bank of Korea’s Digital Innovation Research Group said: “It is necessary to examine not only digital currency but also overall technology including distributed ledger technology and certification according to the current situation.

“There is no change in the existing position that there is no need to issue a CBDC for the time being,” he added.

“This hiring does not presuppose the possibility of issuing a CBDC.”

Earlier this year, the Bank of Korea confirmed that it will not be issuing a digital currency in the near future.

The report states that there is “no urgent need” for the central bank to introduce a CBDC, despite a number of nations considering implementing their own.

And a study conducted by the Bank of Korea concluded that issuance of a CBDC will have negative ramifications on the economy.

The study found that issuance of CBDCs may affect liquidity at commercial banks as the customer demand for deposits or reserves might be reduced.

“This has negative effects on financial stability, which increases the likelihood of bank panic in which commercial banks are short of cash reserves to pay out to depositors,” the report states.