Tag Archives: digitalasset

South Korea’s Central Bank Wants to Digitize the Won

South Korea’s Central Bank Wants to Digitize the Won

South Korea is a very prominent country when it comes to cryptocurrencies and finance. It now appears that a digital Won is being explored, with a pilot program running until late 2021. There are multiple countries aiming to digitize their fiat currency in the coming years.

Digitizing the South Korean Won

Slowly but surely, all financial transactions are shifting to the digital space. Exploring additional options in that regard is never a wasted effort. In South Korea, there is an experiment going on to digitize the local Won currency. The project is monitored by South Korea’s central bank, and will run until December 2021. It is not the first time such a venture is being discussed in the country. Initial remarks first surfaced in late 2018, as the South Korean government expressed an interest in stablecoins. Several questions regarding this venture remain, however. It does not appear as if a blockchain-based infrastructure will be used at this stage. Very little is known about the infrastructure being used for this digital Won as of right now. Central bank digital currencies are being explored in many countries. For now, it remains unclear if there will be some sort of first-mover advantage. With South Korea now taking its trial to the next level, the coming months will undoubtedly get very interesting. 

Article Produced By
JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.


Heiko Closhen, Entrepreneur

Digital Asset as the Next Stage of Development of Financial Technologies

Digital Asset as the Next Stage of Development of Financial Technologies

The concept of assets was formed a long time ago.

The notion “digital asset” gained popularity relatively recently. This was the product of the development of the financial industry in general and the growing significance of digital technologies. The Blockchain technology’s emergence in particular, has contributed to that situation. An increasing number of innovative competing business entities using these solutions indicated the development of an original information economy based on the Blockchain technology. Then, the growth of the digital economy and methods has revealed the need for a new notion of the “digital asset”.

Blockchain’s Role in Creating Digital Assets

The Blockchain technology’s development opens a door for the creation of the first assets. Indeed, the first full-fledged digital currency was bitcoin, which appeared in 2009. The Blockchain technology was created in the same time period. This has significantly improved the transaction security. Therefore, this technology has begun to be effectively applied in many areas. The improvement of security has promoted confidence in this segment and, consequently, its rapid development.

The concept of “Blockchain” refers to a distributed ledger consisting of transaction blocks connected like a chain. In doing so, the content of the next block includes the data about the previous one. The Blockchain technology makes the digitization and subsequent secure information passage possible. This technology has the following key benefits:

· invariability,
· security,
· transparency.

Legal Regulation of Digital Assets

For starters, let’s introduce the concept of a digital asset. So far, there is no clear definition of the term, but experts have concluded that it is an information resource derivative of the right to a value, which circulates in a distributed ledger, where it takes the form of a unique identifier. According to experts of the Simcord company, the asset alone cannot be considered a right to a value. However, it has all the properties derivative of this right. One may wonder about the concept of “derivative of the right”. Using the “divide and conquer” principle, we get the following conclusions:

· “derivative” means “originated from another object”;
· “right” means a degree of possible behavior prescribed by the state.

Thus, a subjective interpretation of the concept “right” should be applied when defining the digital asset, which specifies the type and degree of the possible behavior of persons, which are regulated by legal standards. It is worth noting that the legal regulation model, which is embedded in the controlled ecosystem for digital assets, meets all applicable international standards. Consequently, it does not require the adoption of other laws and regulations.

Actual Technologies Based on Digital Assets

Next, we’ll look at the Bitbon system as an example of using such values as information resources through the asset digitization procedure. The Bitbon information system operates on the basis of the Blockchain technology and has an integrated decentralized structure. It gives users the full ownership of assets. This means that they can: Confirm proprietary right to assets receiving unique digital copies of assets. This ability is provided through asset digitization. Exchange assets with other users without intermediary services or using money. The main system component is Bitbon, which is also used as an exchange value unit of any digital asset. The valuables of the Bitbon system are used as information assets through digitization and the concept of “right to the right”.

The regulatory aspect of the system is founded on three principles:

1. The system of statutory regulation of assets.

2. A clear explanation of legal relations between system users. The Bitbon asset is a token and gives users access to the system. Accordingly, it provides access to all the system capabilities and resources. This asset has the exchange value of any system asset. It creates mutually beneficial relations between users.

3. The notion of “right to the right”. It is about the right to an information asset. At that, the value is in the possession of the owner, and the user has the right to the value. Consequently, the exchange of assets between system users is provided by the right to the value. This is made possible through the asset digitization procedure and the concept of “right to the right”.

Therefore, the Bitbon system is considered appropriate for use in almost all aspects of modern life: economic, insurance, legal, financial, business, trading, etc. Consequently, digital technologies are the future of humanity. Their development is impossible without the usage of assets. That’s why it’s important to consider the general idea of the concept “digital asset” and regulate its essence at the legislative level.

Article Produced By

Owner, Editor, and lead writer for Cryptorials. Cryptocurrency writer and trader since 2014.


Heiko Closhen, Entrepreneur