South Korea’s central bank is set to launch a dedicated virtual asset committee to oversee the cryptocurrency market, while also reorganizing and renaming its central bank digital currency (CBDC) team to strengthen its focus on digital currency initiatives.
According to a report from Yonhap News on Tuesday, a Bank of Korea official stated that the new Virtual Asset Team will handle matters related to stablecoins and virtual assets, and will play a key role in coordinating with the government during ongoing legislative discussions.
The creation of the team is largely driven by growing interest from South Korean banks in issuing stablecoins tied to the Korean won, as well as new stablecoin-related legislation being proposed by lawmakers.
Cryptocurrencies continue to gain traction in South Korea, and last month, the country signaled further support for the sector by electing President Lee Jae Myung, who ran on a pro-crypto platform that endorsed the use of stablecoins and the approval of crypto-based exchange-traded funds (ETFs).
CBDC Research Team Rebranded
The Bank of Korea has renamed its Digital Currency Research Team to the “Digital Currency Team” to reflect its shift from purely theoretical research to more practical, hands-on exploration of digital currency initiatives. A central bank official explained that the new name emphasizes the team’s role as an operational unit actively driving digital currency projects.
In addition, two other teams have been restructured and renamed: the Digital Currency Technology Team, which will focus on research and analysis related to digital currencies, and the Digital Currency Infrastructure Team, which will be responsible for developing a digital voucher management platform based on deposit tokens and creating a testing environment for related infrastructure.
CBDC Pilot Delayed, But May Resume Soon
The Bank of Korea has postponed its retail CBDC pilot, which was scheduled to conclude on June 30, citing growing government support for local currency stablecoins and concerns from banks over the cost of participation. The pilot, initially announced in November 2023, had entered its latest phase on April 1.
Despite the delay, the central bank confirmed that its newly renamed Digital Currency Team will continue working on CBDC-related initiatives. According to reports from Yonhap and Chosun Daily, the test may resume once ongoing legal uncertainties are resolved.
Bank of Korea Governor Lee Chang-yong also reaffirmed the country’s long-term commitment to digital currency, stating that South Korea will need a digital currency in the future, regardless of its specific form.
Korean Banks Favor Stablecoins Over CBDC
In June, eight major South Korean banks revealed plans to launch a stablecoin pegged to the Korean won by late 2025 or early 2026.
At the same time, Bank of Korea Deputy Governor Ryoo Sang-dai expressed support for banks taking the lead as initial issuers of stablecoins, with the possibility of gradually extending issuance to other sectors over time.
