• Title/Summary/Keyword: CBDC(Central Bank Digital Currency)

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Comparison of Public and Private Perspectives on Central Bank CBDC - Focusing on Korean Case (중앙은행 CBDC에 대한 공공 및 민간 관점의 인식 비교연구- 한국 사례를 중심으로)

  • Kim, Bong-Kyu;Lee, Won-Boo
    • The Journal of the Korea Contents Association
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    • v.21 no.9
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    • pp.360-371
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    • 2021
  • The advent of virtual currencies has heightened interest in the Central Bank Digital Currency (CBDC) issued by the central bank. Recently, central banks in some countries have already decided to issue CBDCs or are in the test phase. This study will be an opportunity to compare public and private perceptions of central banks and explore various issues related to the introduction of CBDCs in the future through analysis methods of big data.

The Era of Digital Currency and CBDC Strategy (디지털 화폐 시대와 CBDC 대응전략)

  • Kim, So-Hyung;Chung, Jee-Yong;Kim, Moon-Soo;Choi, Hyang-Mi
    • Journal of Digital Convergence
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    • v.19 no.12
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    • pp.303-309
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    • 2021
  • This study examines the effects of CBDC(Central Bank Digital Currency) on the Korean economy in the digital currency era and discusses the response strategies for CBDC. With the review of the definition and the development status of digital currency, we explore the characteristics and current status of CBDC in Korea as well as the possibility for internationalization of CBDC. The result shows that CBDC can reduce credit risk, improve transaction transparency compared to cash, and increases monetary policy capacity. Meanwhile, the credit and intermediary function of financial institutions may be weakened, and side effects such as financial alienation may occur. Nevertheless, as the issuance of CBDC is an important opportunity to enhance the possibility of internationalization of Korean Won, preemptive measures are required to keep pace with the competition and cooperation with each country toward the digital key currency. We need to accelerate the digital financial environment through Korea's comparative advantage, and develop a strategy to achieve the internationalization of the financial industry and the Korean Won through CBDC issuance. From the early stage of CBDC designing, it is necessary to achieve international agreements through cooperation with other central banks and to develop policies suitable for the transition to digital currency.

CBDC System Design using Blockchain (블록체인 기반 CBDC 시스템 설계)

  • Han, Jungsu;Kim, Jeongheon;Woo, Jongsoo;Hong, James Won-Ki
    • KNOM Review
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    • v.24 no.2
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    • pp.1-12
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    • 2021
  • Recently, research on CBDC (Central Bank Digital Currency) has been actively conducted for various reasons by countries around the world. In addition, with the dazzling development of blockchain technology, blockchain technology is being adopted in CBDC. In this paper, we propose a blockchain-based CBDC system that can be effectively used in the traditional banking system. We also analyze the requirements of CBDC and suggest ways to commercialize CBDC. We present a system design and implementation method, especially in terms of compatibility, interoperability, and privacy.

A Literature Study on Digital Currency and Historical Developments of Money: Dynamic Pattern in Currency, Central Bank Digital Currency and Libra (디지털화폐와 화폐 변천과정에 관한 문헌적 연구: 동적패턴, CBDC, 리브라를 중심으로)

  • Kim, Euiseok
    • The Journal of Society for e-Business Studies
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    • v.25 no.2
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    • pp.109-126
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    • 2020
  • This study attempts to find out the characteristics of digital currency and currency transformation through the analytical descriptions of the literature. In the early days of the emergence of new currency, market-oriented autonomous monetary adjustment was made along with various attempts by the private sector, and then government-centered central currency management and coordination were made for the national monopoly of profits and power. Digital currency can be seen as the emergence of a new form of money that will bring about paradigm changes. CBDC can be divided into direct and indirect types. CBDC is expected to require a strategic approach by the government or firm as it will bring about changes in the ecosystem of related industries. Libra is a stablecoin designed to minimize price fluctuations, and if it succeeds in commercializing it, it is expected to bring about revolutionary changes in the financial industry around the world.

Enhancing Throughput and Reducing Network Load in Central Bank Digital Currency Systems using Reinforcement Learning (강화학습 기반의 CBDC 처리량 및 네트워크 부하 문제 해결 기술)

  • Yeon Joo Lee;Hobin Jang;Sujung Jo;GyeHyun Jang;Geontae Noh;Ik Rae Jeong
    • Journal of the Korea Institute of Information Security & Cryptology
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    • v.34 no.1
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    • pp.129-141
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    • 2024
  • Amidst the acceleration of digital transformation across various sectors, the financial market is increasingly focusing on the development of digital and electronic payment methods, including currency. Among these, Central Bank Digital Currencies (CBDC) are emerging as future digital currencies that could replace physical cash. They are stable, not subject to value fluctuation, and can be exchanged one-to-one with existing physical currencies. Recently, both domestic and international efforts are underway in researching and developing CBDCs. However, current CBDC systems face scalability issues such as delays in processing large transactions, response times, and network congestion. To build a universal CBDC system, it is crucial to resolve these scalability issues, including the low throughput and network overload problems inherent in existing blockchain technologies. Therefore, this study proposes a solution based on reinforcement learning for handling large-scale data in a CBDC environment, aiming to improve throughput and reduce network congestion. The proposed technology can increase throughput by more than 64 times and reduce network congestion by over 20% compared to existing systems.

First Smart Contract Allowing Cryptoasset Recovery

  • Kim, Beomjoong;Kim, Hyoung Joong;Lee, Junghee
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.16 no.3
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    • pp.861-876
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    • 2022
  • Cryptoassets such as Bitcoin and Ethereum are widely traded around the world. Cryptocurrencies are also transferred between investors. Cryptocurrency has become a new and attractive means of remittance. Thus, blockchain-based smart contracts also attract attention when central banks design digital currencies. However, it has been discovered that a significant amount of cryptoassets on blockchain are lost or stranded for a variety of reasons, including the loss of the private key or the owner's death. To address this issue, we propose a method for recoverable transactions that would replace the traditional transaction by allowing cryptoassets to be sent to a backup account address after a deadline has passed. We provide the computational workload required for our method by analyzing the prototype. The method proposed in this paper can be considered as a good model for digital currency design, including central bank digital currency (CBDC).

Political Economic Analysis of the Central Bank Digital Currency (중앙은행 디지털 화폐에 대한 정치경제학적 분석)

  • YoungBin Hahn
    • Analyses & Alternatives
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    • v.7 no.2
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    • pp.147-178
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    • 2023
  • While most of countries today are opposing the issuance of private-led cryptocurrency, nevertheless they are actively jumping into the issuance of government-led digital currency such as CBDC. This article aims to find an answer to this dual attitude of countries. To achieve the purpose, this article finds out the characteristics of political power and economic interest that digital currency has and applies it to the international dimension of the Bretton Woods II System. Then come up to the conclusion that the answer can be found in the fact that the current dual attitude of countries is closely related to the crisis of the international monetary order. The Bretton Woods II System, which led the world economy through reckless monetary expansion based on credit currency, exposed its limitations through the 2008 global financial crisis and put countries into difficulties. In this situation, the cryptocurrency, which appeared by raising the issue of the monopoly power of the central authority in issuing currency, had no choice but to act as an opportunity to drive countries further and further into a corner. This article views CBDC as a national response to address these issues. In other words, countries maintain their monetary power by absorbing the challenge of private digital currency at the government level through CBDC, and use this as a stepping stone to reorganize the international monetary order in crisis with the intention to use it as a means to their advantage. That is what this article is trying to argue.

Prospect Analysis for Utilization of Virtual Assets using Blockchain Technology

  • Jeongkyu Hong
    • Journal of information and communication convergence engineering
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    • v.22 no.1
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    • pp.64-69
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    • 2024
  • Blockchain is a decentralized network in which data blocks are linked. Through a decentralized peer-to-peer network, users can create shared databases, resulting in a trustworthy and aggregated database known as a blockchain that enhances reliability and security. The distributed nature of the blockchain enables data to be stored on multiple nodes, eliminating the need for a central server or platform. This disintermediation significantly reduces the transaction and administrative costs. The blockchain is particularly valuable in applications where reliability and stability are critical because it establishes an open database that ensures data integrity, making it virtually impossible to tamper with or falsify data. This study explores the diverse applications of the blockchain technology in virtual assets, such as cryptocurrency, decentralized finance, central bank digital currency, nonfungible tokens, and metaverses. In addition, it analyzes the potential prospects and developments driven by these innovative technologies.