South Korea’s Hana Bank and Woori Bank have begun studying so-called tokenized депозитных сертификатов. The institutions see them as an alternative to stablecoins and CBDC, reports Maeli Business News Korea.
Tokenized deposit certificates could replace ordinary cash and deposits in banks without negative impact on the financial system. Such products would require KYC under the same standards as any service of the institutions, according to отчету Woori Bank.
Hana Bank plans to publish a similar study soon.
Analysts linked interest in the aforementioned instruments to regulators’ negative reaction to issues with several stablecoins last year.
“Tokenized deposit certificates are perceived by banks as a reliable asset, because they are indistinguishable from the existing system,” the report says.
The product could potentially be compatible with CBDC. Both institutions are taking part in testing such a possibility under the Bank of Korea’s auspices.
In July the regulator сообщил about continuing preparations for the potential deployment of the digital won. The current stage includes studying the use of smart contracts, autonomous payments using NFC-technology and cross-border payments.
In June 2023, the National Assembly of South Korea passed Digital Asset User Protection Act. The push for its approval was the collapse of the Terra ecosystem, led by Do Kwon, a South Korean citizen.
The document consolidated 19 different bills related to cryptocurrencies. It introduces the concept of “digital assets” and defines liability for offenses such as insider trading, market manipulation, and unfair trading practices.