BOK to prioritize CBDC, deposit tokens over asset tokens

The Bank of Korea (BOK) announced that it will prioritize establishing a payment system centered on a central bank digital currency (CBDC) and deposit tokens to prepare for the expansion of the asset tokenization market, iNews24 reported. In a BOK issue note released today, the central bank stated that asset tokens would be a later consideration. The bank also assessed that stablecoins could be used as a supplementary tool, provided they fully comply with strict regulations and ensure redeemability and the stability of their reserve assets. Furthermore, the BOK warned that while tokenized assets can be traded 24/7 with instant settlement, their underlying real-world assets adhere to traditional financial market hours and settlement cycles. This mismatch, it cautioned, could lead to large-scale redemptions and forced liquidations occurring simultaneously during periods of market instability.