South Korea’s Bank of Korea has renamed its CBDC research teams to emphasize practical digital currency development and established a virtual asset committee to oversee stablecoin regulations and crypto market developments.
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The Bank of Korea’s Digital Currency Research Team is now the Digital Currency Team, focusing on active digital currency initiatives.
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Eight major Korean banks plan to launch won-pegged stablecoins by late 2025 or early 2026, reflecting growing industry interest.
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Bank of Korea officials highlight the importance of digital currency for the future, despite postponing the current CBDC test due to legal uncertainties.
South Korea’s Bank of Korea renames CBDC teams and forms a virtual asset committee to support stablecoin legislation and digital currency innovation.
Bank of Korea Renames CBDC Teams to Reflect Practical Focus
The Bank of Korea has officially renamed its Digital Currency Research Team to the Digital Currency Team to underscore its role as a practical business unit actively pursuing digital currency projects. This change signals a shift from theoretical research toward real-world applications. Additionally, two other teams were renamed: the Digital Currency Technology Team, which handles research and investigation, and the Digital Currency Infrastructure Team, responsible for developing digital voucher management and testing platforms.
What Is the Role of the New Virtual Asset Committee?
The newly formed Virtual Asset Team at the Bank of Korea will monitor the crypto market and handle discussions related to stablecoins and virtual assets. It will also coordinate closely with government bodies during the legislative process. This committee was created in response to proposed stablecoin legislation and growing market interest, aiming to ensure regulatory alignment and market stability.
The Bank of Korea’s main office. Source: Wikimedia Commons
Why Was the CBDC Test Postponed and What’s Next?
The Bank of Korea postponed its retail CBDC test, originally scheduled from April to June 2025, due to concerns over participation costs voiced by banks and ongoing legal uncertainties around stablecoins. Despite the delay, the Digital Currency Team plans to continue CBDC-related projects and may resume testing once regulatory clarity is achieved. Bank of Korea Governor Lee Chang-yong emphasized that digital currency remains essential for South Korea’s future financial ecosystem.
How Are Korean Banks Shaping the Stablecoin Landscape?
Eight major South Korean banks announced plans to launch stablecoins pegged to the won by late 2025 or early 2026. Bank of Korea Deputy Governor Ryoo Sangdai supports banks as primary stablecoin issuers initially, with potential expansion to other sectors later. This approach reflects a collaborative effort between regulators and financial institutions to foster innovation while managing risks.
| Entity | Role | Timeline |
|---|---|---|
| Bank of Korea Digital Currency Team | Practical CBDC development | Ongoing |
| Virtual Asset Committee | Crypto market and stablecoin oversight | Established 2025 |
| Korean Banks | Stablecoin issuance | Late 2025 – Early 2026 |
Frequently Asked Questions
What is the Bank of Korea’s new approach to CBDC development?
The Bank of Korea renamed its CBDC research teams to emphasize practical digital currency initiatives and formed a virtual asset committee to oversee stablecoin regulations and crypto market developments.
How will the virtual asset committee impact stablecoin legislation?
The committee will monitor the crypto market, engage in stablecoin discussions, and collaborate with government bodies to ensure effective regulatory frameworks during the legislative process.
Key Takeaways
- Practical Focus: The Bank of Korea’s renamed teams emphasize active digital currency development over theoretical research.
- Regulatory Oversight: A new virtual asset committee will guide stablecoin legislation and monitor crypto markets.
- Industry Collaboration: Major Korean banks plan to launch won-pegged stablecoins by 2026, supported by central bank officials.
Conclusion
South Korea’s Bank of Korea is advancing its digital currency strategy by reorganizing CBDC teams and establishing a virtual asset committee to oversee the evolving crypto landscape. With strong support from financial institutions and government bodies, the country is positioning itself for a future where digital currencies and stablecoins play a central role in the economy. Continued regulatory clarity and collaboration will be key to this transition.
