The head of Kookmin Bank's IT center said "Virtual assets can be developed under the leadership of authirities"
“Some say crypto is a bubble but that applies to incompetent individuals that have to take responsibility for their actions and fail to properly manage risk. If investments are led by institutions, the crypto asset market can get larger in a healthier way,” said Cho Jin-seok, KB Kookmin Bank’s head of IT technology innovation at a seminar held at the National Assembly on Sept. 22. The opinion is his, not the company’s, Cho said before his remarks. #U.S. and Germany allow custody service for crypto asset “If we look at what’s happening in other countries, the United States and Germany allow institutions to offer custody service for crypto assets. Russia passed a bill in regards to crypto assets as well. The U.S. Office of the Comptroller of the Currency (OCC) recently authorized federal banks to hold reserves for stablecoins,” Cho said. “For a healthier market, the next round has to be led by financial institutions,” he added. “Crytpo assets are considered a bubble because incompetent individuals fail to manage risk. Investment led by institutions can really boost that market. At the mobile payment app Square, for example, crypto assets are its core revenue source. In that sense, traditional financial institutions are eyeing crypto assets as well as part of their search for a future revenue sources.” If financial institutions do get to lead the trend, the core service regarding crypto assets will be custody and prime brokerage, Cho said. “The technology and concept of digital assets will be incorporated or combined with traditional finance. The cryptocurrency industry as well will come up with services that traditional players had offered.” #KB Kookmin is testing blockchain technology On KB Kookmin Bank’s progress in blockchain research, Cho said the firm had been testing a digital asset platform and issued digital assets as well. This platform is available for any company that offers financial products or issues digital currency. “KB Kookmin Bank is interested in developing native digital assets, like a fitness club offering membership in blockchain to simplify re-registration.” #Some still don’t see the necessity of blockchain Cho noted that many people still don’t see why blockchain should be used in our daily lives. “It’s not that they don’t believe the technology; it’s more due to a lack of trust in policies that could back blockchain transactions.” He also noted because blockchain is currently centered on crypto assets, fewer people feel it can help their daily lives. Cho expressed confidence that KB Kookmin is ready to face any regulatory huddles in the field. “In the U.S., blockchain analysis companies have made blacklists and started to embark on systematic monitoring of users,” he said. “We need regulatory reforms and clear guidelines.”