South Korea’s central bank will reportedly launch a virtual asset committee to monitor the crypto market and has refocused and renamed its central bank digital currency (CBDC) team to actively explore digital currency.
A Bank of Korea official said its Virtual Asset Team will also be responsible for responding to “discussions related to stablecoins and virtual assets,” and “cooperative work with the government” during the legislative process, Yonhap News reported on Tuesday.
Banks in South Korea are mulling stablecoins pegged to the country’s currency, the won, and proposed stablecoin legislation being introduced by lawmakers was reportedly the primary driver behind the new team’s creation.
Crypto is popular among South Koreans, and last month the country further embraced the sector by electing Lee Jae Myung as president after he ran on a pro-crypto platform that included allowing stablecoins and crypto exchange-traded funds.
CBDC research team renamed
The central bank’s Digital Currency Research Team, which is researching CBDC-related projects, was renamed to the “Digital Currency Team.”
A BOK official said the name change was to highlight that the team is a practical business department actively exploring digital currency initiatives, rather than just focusing on theoretical research.
Two other teams have also been renamed, now taking up the mantle of the Digital Currency Technology Team, responsible for digital currency-related research and investigation, and the Digital Currency Infrastructure Team, tasked with developing a digital voucher management platform based on deposit tokens and building a platform for testing.
CBDC test postponed, but could return soon
The Bank of Korea postponed its CBDC test on June 29, as the country’s government aired support for local currency stablecoins and banks voiced concerns over the cost of participating.
The retail CBDC test was first announced in November 2023, and its latest phase was supposed to run from April 1 to June 30.
A central bank official said the Digital Currency Team will continue with CBDC-related projects and possibly resume discussions around the test once the “legal uncertainties are resolved,” Yonhap and Chosun Daily reported.
Related: South Korean bank stocks surge on stablecoin trademark filings
Bank of Korea Governor Lee Chang-yong also reportedly emphasized that South Korea needs “digital currency in the future” regardless of its form.
Korean banks want stablecoins over CBDC
Eight major South Korean banks announced plans in June to launch a stablecoin pegged to the country’s won currency in late 2025 or early 2026.
Meanwhile, Bank of Korea deputy governor Ryoo Sangdai has voiced support for banks being the primary issuers of stablecoins in the country before gradually expanding to other sectors.
Magazine: Hong Kong hoses down stablecoin frenzy, Pokémon on Solana: Asia Express
