Central bank chief vows to monitor impact of digital money on economy

Lim Chang-won Reporter Posted : 2018-01-18 16:06 Updated : 2018-01-18 16:06
글씨작게 글씨크게

[Yonhap Photo]

SEOUL, Jan. 18 (Aju News) -- South Korea's central bank chief vowed Thursday to keep an eye on how virtual money is affecting the real economy, although its impact on the stability of financial markets is still limited.

"We are watching the effects of virtual money on the economy," Bank of Korea Governor Lee Ju-yeol told reporters, adding it is hard to gauge the impact of virtual currency on the economy because there are no related statistics.

Virtual currencies are not regarded as real money because they do not have the nature of money or legal means of payment at this stage and the stability of their value is not guaranteed, he said. "The impact of virtual currency price shocks on our financial stability is limited at present."

Like other central banks, the Bank of Korea is still studying what kind of effect digital money will have on the existing settlement system, and how it will affect the overall economy and financial stability, Lee said.

Lee's comment came after the central bank kept its key interest rate unchanged at 1.5 percent.  The central bank predicted South Korea's economy would grow three percent this year. Inflation has been within the range of the government's target.