South Korean Banks Are Looking for Alternatives to Stablecoins and CBDCs
Main page News, Banking, South Korea, CBDC, Stablecoins

South Korean banks Hana Bank and Woori Bank have started exploring so-called certificate of deposit tokens as an alternative to stablecoins and CBDCs, Maeli Business News Korea has reported.

According to the publication, certificate of deposit tokens can become a substitute for cash and regular bank deposits without affecting the financial system negatively.

Similar products will require KYC with the same standards as any institutional service.

The interest in the aforementioned analytics tools has been associated with the negative reaction of regulators to the problems of several stablecoins last year.

According to the report:

"Banks perceive tokenized CDs as a reliable asset because they are no different from the current system."

The product has the potential to be compatible with CBDCs. Both institutions are participating in testing this possibility under the auspices of the Bank of Korea.

Earlier this month, the regulator announced the continuation of preparations for the possible implementation of digital won. The current stage includes exploring the use of smart contracts, offline payments using NFC technology and cross-border payments.

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