South Korea’s Finance Minister: Cryptocurrencies Are A Potential Threat To Fiat Currencies
Kim Yong-jin, South Korean Deputy Minister of Strategy and Finance, recently noted that the cryptocurrency market and industry is not only beginning to stabilise, but also growing at an exponential rate.
The minister’s comments came during a financial conference at InterContinental Seoul. Kim made a statement saying,
“Cryptocurrencies like Bitcoin and Ethereum, which led an investment and speculative bubble earlier this year, have stabilized and are leading both the authorities and investors to question the foundation of the fiat system. The central bank should consider the emergence of alternative payment methods such as cryptocurrencies as a threat to the existence of the traditional fiat system.”
The South Korean government is not alone when it comes to trying to ban or restrict the activity of their cryptocurrency market. The Reserve Bank of India (RBI) and the State Bank of Pakistan have pressurized national banks to not process cryptocurrency-related transactions.
The administration of President Moon Jae-in has garnered the majority support of the people of South Korea thanks to the government’s notable efforts to draft a peace treaty between the North and the South, and the government’s efforts to crack down on corrupt politicians. Former presidents Park Geun-hye and Lee Myung-bak have been arrested and incarcerated for corruption, with former president Park facing up to 25 years in prison.
However, An anonymous source explained to the Korea Times, that the country’s financial authorities would eventually lift the ban on ICOs as the country’s largest multi-billion dollar cryptocurrency and technology conglomerates, including Kakao and Bithumb, have threatened to leave the country to establish blockchain ventures elsewhere.
“The financial authorities have been talking to the country’s tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met.”
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