BOK Urges CBDC Over Stablecoins for Tokenized Asset Settlement
The Bank of Korea recommends using CBDCs or bank deposits for tokenized asset settlements to ensure reliability.Summary
The Bank of Korea (BOK) released a report titled "Status of Domestic and Overseas Asset Tokenization and Future Policy Challenges" on Tuesday, advocating for the use of central bank digital currencies (CBDCs) or bank deposits as primary settlement assets for tokenized securities. This recommendation comes as the global asset tokenization market expands rapidly, reaching $50.37 billion as of March 2024, with the United States dominating the sector. The BOK highlights that tokenization offers benefits such as shortened settlement cycles and reduced counterparty risk through smart contracts. However, the report also warns of potential risks, including liquidity mismatches and the spread of shocks from the stablecoin market to traditional financial assets. To establish a robust domestic market, the BOK suggests activating token securities for non-standard assets and prioritizing central bank money to maintain the singleness of money and ensure reliability.
(Source：서울경제)