On Monday, the National Assembly of the Republic of Korea executed a legislative audit of the Bank of Korea (BOK). Governor of the bank, Lee Joo-yeol said lawmakers that he cannot recognize digital currencies such as Bitcoin as currency, as per the local publications.
“Is it practical to name virtual money as a digital currency?” Lee was asked. He answered,
“It is impracticable to look at the example of the International Settlement Banks (BIS) in terms of money”.
Furthermore, he said:
“Regulation is appropriate for it because it is regarded as a commodity. It is not a regulation at the level of money…It is not a situation for the Bank of Korea to take action at present.”
Lack of Research on Digital Currencies
According to the Yonhap News, Song Young-Gil, Democratic Party lawmaker and representative of the National Assembly’s Planning and Finance Committee, indicates that the central bank audit discloses that its research on digital currency “is poor”.
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He noted that,
“more than 1000 companies are using Bitcoin in Korea”. Therefore the data listed shows insufficient numbers”.
“Digital virtual currency and blockchains are most essential research subjects, if you try to ignore them, you can lose the future market,” song asserted, including that “the bank should research more in the future for the betterment of digital currencies.”
Answering to the lawmaker, Lee said, “I completely agree with your point of view.” Quoting that “we also consider a several virtual digital currency research regulated in countries like Sweden.”
In addition, he promised:
“The Bank of Korea will put more emphasis on virtual currency research”.