Bank of Korea Establishes Virtual Asset Committee
The central bank of South Korea has created a virtual asset committee to keep a close eye on the crypto market. Along with that, they’ve rebranded their Digital Currency (CBDC) team to better focus on exploring digital currencies.
Officials from the Bank of Korea mentioned that this virtual assets team will handle matters regarding “stablecoins and virtual assets,” in addition to collaborating with the government during legislative discussions, according to reports from Yonhap News.
It seems that the drive to form these new teams was largely influenced by recent developments, including proposed laws related to stubcoins introduced by lawmakers, which appear to have stirred interest among South Korean banks.
Crypto has gained substantial popularity in South Korea lately. Just last month, the country took a significant step forward in this sector when it elected Lee Jae Myung as president. His campaign, which embraced a pro-crypto stance, included topics like stablecoins and crypto exchange-traded funds.
Renamed Digital Currency Team Focuses on Practical Initiatives
The research team focused on central bank digital currencies has been rebranded as the “Digital Currency Team.” Bank officials clarified that this change highlights their commitment to actively exploring digital currency projects rather than simply engaging in theoretical research.
In addition, two other teams have also been renamed and are now handling aspects related to digital currency infrastructure and technology. They are tasked with researching and developing a platform for testing a digital voucher management system based on deposit tokens.
CBDC Testing Delayed, But Hope Remains
The Bank of Korea postponed its CBDC testing on June 29, citing concerns from banks about the costs involved in participation. The retail CBDC test was initially announced in November 2023 and was intended to occur from April to June.
Despite the delay, central bank officials indicated that the digital currency team would continue with CBDC-related projects and resume discussions about testing soon, stating that the “legal uncertainty will be resolved.” This optimism was echoed in reports from Yonghap and Chosun.
Governor Lee Jang Yong also emphasized that South Korea is in need of a “future digital currency,” regardless of its specific form.
Stablecoin Initiatives from South Korean Banks
Eight South Korean banks announced plans in June to launch stablecoins tied to the country’s currency. These are expected to roll out in the second half of 2025 or early 2026. Meanwhile, Lieutenant Governor Bok Ryoo Sangdai has voiced support for the bank becoming a leading issuer of stubcoin in the country before gradually branching out into other sectors.
