TLDR
Bank of Korea created a virtual asset team to monitor crypto and stablecoins
CBDC test was paused in June due to stablecoin momentum and legal issues
Korean banks plan to issue won-backed stablecoins by late 2025
BOK renamed CBDC teams to reflect practical digital currency operations
South Korea’s central bank has created a new division to oversee virtual assets and renamed its CBDC team. These steps reflect growing momentum around Korean won-based stablecoins and shifting priorities in the country’s digital currency strategy.
Bank of Korea Forms Virtual Asset Division Amid Stablecoin Push
The Bank of Korea (BOK) has launched a Virtual Asset Team under its Financial Payment Systems Bureau. This new team will monitor developments in the crypto asset space and lead internal discussions about legislation related to virtual assets and stablecoins.
The creation of this team comes as lawmakers in South Korea push to create a legal framework for Korean won-backed stablecoins. The division is also expected to work with other government agencies during this legislative process. According to a BOK official cited by Yonhap News, the new division will be involved in monitoring market changes and supporting policy discussions.
The Virtual Asset Team’s responsibilities also include overseeing collaborative efforts with financial authorities and private institutions. This step aligns with recent moves by South Korean banks that are preparing to introduce local currency-pegged stablecoins.
BOK Renames and Refocuses Digital Currency Teams
As part of a broader restructuring, the BOK has renamed its Digital Currency Research Team to the Digital Currency Team. A BOK official said the change reflects a shift from theoretical research to more practical business functions.
The central bank also renamed two other related departments. The former research teams are now called the Digital Currency Technology Team and the Digital Currency Infrastructure Team. The Technology Team will handle research and technical investigations, while the Infrastructure Team will focus on building a platform for digital voucher management and deposit token testing.
These adjustments signal that the BOK is moving forward with operational plans for future digital currency models, even as its retail central bank digital currency (CBDC) pilot remains paused.
Retail CBDC Test on Hold Amid Stablecoin Progress
The Bank of Korea announced on June 29 that its retail CBDC test has been postponed. The test was originally scheduled to run from April 1 to June 30.
A BOK official told Yonhap News that the project may resume once current legal uncertainties are addressed. The CBDC team continues to monitor market developments while awaiting regulatory clarity. The central bank confirmed that the test could be revived if conditions allow.
The retail CBDC test began in 2023, with the latest phase focusing on technology integration and user simulations. However, banks raised concerns about high operational costs, leading to a temporary halt.
Private Sector Moves Ahead with Stablecoin Plans
Eight major South Korean banks have announced plans to issue Korean won-backed stablecoins by late 2025 or early 2026. These banks have submitted trademark applications for stablecoin ticker symbols and intend to serve as primary issuers.
The growing private sector interest in stablecoins comes amid support from President Lee Jae Myung, who campaigned on a pro-crypto platform. The president sees stablecoins as a tool to prevent capital flight and encourage innovation.
BOK Deputy Governor Ryoo Sangdai also supported the idea of banks leading stablecoin issuance. He said that starting with the banking sector could ensure a more stable rollout, before expanding access to other sectors.
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