Cryptocurrencies A Threat To Fiat Money Says South Korean Finance Minister

The cryptocurrency market is becoming larger by the day, and developing a more pronounced presence in each country. With its increase in popularity some governments are feeling somewhat threatened, one of which happens to be South Korea. The country’s Deputy Minister of Strategy and Finance, Kim Yong-jin recently commented that digital currency could disrupt the traditional fiat system of the country.

However, the real question is how reasonable is this idea of cryptocurrency breaking the fiat system? Well, this is what Yong-jin points out during a financial conference at InterContinental Seoul:

“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.”

Now, let’s come to the question regarding why Yong-jin came to this remark? Well, South Korea, alongside many other Asian countries have been strongly regulating digital currencies since its inception. The main focus has been with the intention of protecting customers, investors, and traders. This has even lead to the banning of ICOs from the country. However, this scenario is going to change drastically.

It seems that the South Korean government are planning to lift this ICO ban, and inland some companies are planning to ride the crypto wave. The news comes from an anonymous source as they explain it to the Korean Times.

According to the source, “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.”

Now putting all this information to light, it seems Yong-jin has a valid reason to feel scared for fiat currencies, as digital exchanges are starting to show much higher revenues than traditional banks. For example, in 2018 Q1, the Deutsche Bank recorded a profit of only $146 million, whereas for Binance, one of the most important cryptocurrency exchanges, had a profit in the $200 million range.

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