When other countries are battling with adopting cryptocurrencies into their financial sectors, South Korea prides itself on being the bull in crypto investment. You could be worried about this discovery, but the reality is that there is over $2 Billion worth of digital currency in South Korean banks. Nonetheless, one of the biggest cryptocurrency exchange in the country holds over $6 Billion of user funds in Cryptos. Laws and legislation already passed in South Korea certainly have a significant boost on the general acceptance and adoption of cryptos in the market.
A glimpse into cryptocurrency adoption in S. Korea
Over the past one year, Bithumb, the largest cryptocurrency wallet in the country holds over $1 Billion of digital currency. This figure has grown significantly this year compared to the total $6 Billion it had last year. Additionally, it is a general law that Regulated banks in South Korea are supposed to have about 8% of their total assets in the form of cryptocurrencies. However, as more and more cryptos are being adopted as a type of asset class, then this percentage is expected to rise.
Concerning general acceptance and legal, financial activities related to cryptos, many banks still reserve their money in digital currency. Most importantly, these banks are investing considerable amounts in cryptocurrency. But, as a cautionary measure, these tasks have to be regulated to avoid overindulgence, which could negatively affect the financial system. Similarly, the use of digital currency by South Koreans has increased hundredfold. Many citizens are using Amazon Gift Card for the exchange of Bitcoin, Ripple and other cryptocurrencies.
Even though the use of cryptos in South Korea has little effect on the financial system in totality, it is equally alarming that most of the major shareholders in cryptocurrencies are regulated banks.
Extensive use of Blockchain technology in South Korea
When you would least expect that most of these banks are investing in products and services, bigger financial players and major banks are joining hands for corporate investment. Shinhan, one of the largest bank in the country developed a BTC vault for use by its customers. Additionally, they partnered with Ripple, a great crypto company, and Blockchain technology developer. As a result, Shinhan’s customers will get served from the platform developed from Ripple’s Blockchain technology.
This information was relayed in one of Shinhan’s press releases where it explained on its slated activities. They claimed to be testing the platform from where its users will acquire Bitcoin Wallets and Private Keys from the bank. However, the vault service will be free to customers with chargeable withdrawals.
Well, each of these activities shows that traditional institutions are adopting the use of cryptocurrencies from where they will earn profit and benefits. Moreover, when other countries ultimately adopt the use of cryptocurrencies, it is almost indispensable that major financial institutions will also adopt the digital currency. Introduction of ICOs will certainly regain traction, resulting in many institutions as well as interested parties engaged in the market.
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