North Korea reportedly plans to create its own cryptocurrency in an attempt to circumvent the U.S.-led global financial system.

According to reports, North Korea is in the early stages of developing a cryptocurrency similar to Bitcoin (BTC).

According to reports, representatives of the North Korean government have mentioned that North Korea is in the early stages of developing its own cryptocurrency. The project aims to help the Democratic People's Republic of Korea evade international sanctions and attempt to circumvent the U.S.-dominated global financial system.

The Pyongyang government has long shown interest in cryptocurrencies, and the country recently hosted its first blockchain and cryptocurrency conference in April, bringing together local experts and foreign companies to discuss future developments.

Alejandro Cao de Benos, who is in charge of the North Korean cryptocurrency conference, stated that the unnamed cryptocurrency is intended to be "more like bitcoin or other cryptocurrencies" rather than a stablecoin planned by other governments. He added:

We are still in the early stages of creating this currency, currently researching any commodities derivatives that could give it value.

Local cryptocurrency observers in North Korea also revealed that North Korea has the expertise needed to establish and deploy its own cryptocurrency, which could help North Koreans evade sanctions. Kayla Izenman, a research analyst at the Royal United Services Institute based in London, mentioned:

North Korea has shown a broad interest in cryptocurrencies and undoubtedly has the technical expertise in mining, hacker exchanges, crypto hijacking, and more, enabling them to develop and exploit almost all iterations of cryptocurrencies. This even means they could launder the established currency through unregulated foreign exchanges.

Weaponizing Cryptocurrencies

As mentioned in an article I wrote a few days ago, the North Korean government is actively developing cryptocurrencies, even employing hacker groups under the North Korean Reconnaissance General Bureau to hack cryptocurrencies and use them in large-scale weapons.

Related reading: U.S. sanctions three major North Korean hacking groups

Moreover, its interest in blockchain is not limited to simply stealing bitcoin. In 2018, Jonathan Foong Kah Keong—a captain stationed in Singapore, according to his now-deactivated LinkedIn profile, was found in a United Nations investigation since 2013 to have been aiding North Korea in evading sanctions. He established a company called Marine Chain in Hong Kong, which sold digital tokens exchanging partial ownership of maritime vessels.

According to the UN investigation, the company's platform was used to raise funds for the regime and potentially as a means to evade sanctions on shipping by creating a new method of obscuring ship ownership.

Finally, although the North Korean mission to the United Nations in New York refused to confirm or deny his claims, stating, "I cannot give you an answer," the regime's intentions and ambitions are quite evident, warranting continued monitoring.

Further Reading

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