The crypto revolution is not just limited to bitcoins and altcoins anymore. Blockchain, which is the supporting technology for cryptocurrencies, can also be used to create state-controlled digital currencies as well.
Now, the very idea of centralizing decentralized digital currencies may seem to go against the grain of the original vision of cryptos, but it will foster a more mainstream integration of both blockchain and digitized tokens.
According to Dae-ki, the benefits of Blockchain Technology, which would support the digital won, include lower fees, a high level of transparency and easy customer usability. He added that adopting digital currencies could be a “revolution in finance”.
According to the Korea Times, Dae-ki stated:
However, the country is a long way to realizing this as cryptocurrencies are still not seen as legal tender in Korea. Nevertheless, the implementation of a digitized fiat currency would completely transform the country’s banking system. He added:
Even though crypto is not a legalized medium of exchange in Korea, the country still has one of the largest trading markets in the world. They are currently in the process of implementing stricter regulations to facilitate a solid framework with regard to trading in crypto.
However, there is global debate as to what digital currencies actually are. Just because it is called a currency, it doesn’t mean that’s what it is, at least for some countries. Dae-ki explained:
China also seems to be showing interest in digitizing their local fiat currency, with the People’s Bank of China has successfully tested this blockchain-based theory last year. In addition, Russia, Israel and Dubai have vocalized their goal to do the same by creating and issuing state-run digital currencies.