Tokenized Deposits as Alternative to Stablecoins Favored by South Korean Banks in Preparation for CBDCs

Tokenized Deposits as Alternative to Stablecoins Favored by South Korean Banks in Preparation for CBDCs

Jul. 24, 2023

By Liam 'Akiba' Wright

South Korean banks' see growing trend towards certificate of deposit tokens as stablecoin alternatives.

South Korean banks are favoring Certificate of Deposit (CD) tokens as potential alternatives to “volatile” stablecoins, as reported by the South Korean news organization Pulse on July 24.

According to Pulse, industry sources revealed that Hana Bank plans to research CD tokens as part of the bank’s preparations for a potential Central Bank Digital Currency (CBDC) project led by the Bank of Korea.

Woori Bank has also expressed interest in CD tokens, as evidenced by a recent report issued by its research body.

South Korean crypto regulation

This development comes when South Korea’s financial regulators are strategizing the final aspects of new rules for the country’s cryptocurrency industry.

As previously reported by Cryptoslate, the impending legislation will focus on regulating crypto-asset issuance, tackling conflicts of interest, and establishing a robust framework to supervise stablecoins.