Keynote speech at Korea-IMF joint conference
“There are concerns about weakening monetary policy and capital management.”
Kim So-young, vice chairman of the Financial Services Commission, announced his intention to review additional market discipline systems related to the issuance and distribution of virtual assets. International Monetary Fund (IMF) President Kristalina Georgieva (pictured) also emphasized the need for appropriate regulation of those issuing virtual assets.
At an international conference held on the 14th at the Four Seasons Hotel in Jongno-gu, Seoul under the theme of ‘The Future of Digital Currency and Central Bank Digital Currency (CBDC) Promotion Strategy’, Vice Chairman Kim said, “As the main framework of the virtual asset disciplinary system has been established first, virtual assets will not be allowed in the future.” “We will further review issuance, distribution, business activities of operators, and market regulations,” he said. He added, “We will supplement the reliability and stability of the digital asset market by establishing a separate regulatory system for stable coins (coins designed to be linked to fiat currencies such as dollars) that can threaten existing monetary sovereignty and financial markets.” .
Governor Georgieva, who gave a keynote speech, said, “The use of virtual assets can weaken the transmission of monetary policy and circumvent capital flow measures such as foreign currency holding limits,” and added, “Like Korea’s ‘Hangul,’ it can be more efficient and interoperable.” “Our goal should be to create the right infrastructure that is both feasible and accessible.” He continued, “To prevent these side effects, appropriate regulations and discipline are needed for virtual asset issuers and issuing institutions.”
Governor Georgieva predicted that central bank CBDC will play a key role in integrating the new financial system. He said, “We are in an era of high interest rates and many countries are issuing CBDCs. Countries that are not sure whether CBDC is right for their country should not fall behind by not participating (in CBDC research or related policies, etc.). “Interoperability issues and regulations must be addressed through public-private partnerships,” he emphasized.
Source: Donga
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