The launch of a spot Bitcoin (BTC) exchange-traded fund (ETF) in South Korea could cause severe economic disruption, according to a recent analysis by the Korea Institute of Finance (KIF).
Despite the global trend toward approving cryptocurrency-pegged ETF products, the report highlights potential unique challenges that the South Korean market may face.
Potential Risks of South Korea’s Bitcoin ETF
The approval and launch of Bitcoin spot ETFs has become a trend worldwide, and this phenomenon has attracted widespread discussion and attention in the Korean financial community. Lee Bo-mi, a researcher at the Financial Services Agency of Korea, explored in depth the negative impact that Bitcoin ETFs may have on the Korean market in his report "Review of Approval of Overseas Virtual Asset Spot ETFs".

The Bank for International Settlements (BIS) proposed in its upcoming 2024 annual economic report that central banks should actively adopt artificial intelligence (AI) technology to cope with its profound impact on the economy and financial system. BIS particularly emphasized that the widespread application of artificial intelligence has the potential to change inflation trends and called on policymakers to integrate artificial intelligence into their operational strategies to promote financial and price stability.

Cecilia Skingsley, head of the BIS Innovation Center, revealed that regulators are actively exploring the application of artificial intelligence in different fields with central bank partners. She pointed out that as early adopters of machine learning technology, central banks can effectively use AI's ability to analyze and structure large amounts of unstructured data.