Bank of Korea (BOK) is forming a new Virtual Asset Committee to keep a closer eye on the crypto market, according to Yonhap News. As part of the shift, the BOK has renamed and refocused its central bank digital currency (CBDC) unit to more actively study digital currencies.
An official from the Bank said the newly formed Virtual Asset Team will also handle discussions around stablecoins and other digital assets, and work closely with the government as lawmakers push forward crypto-related legislation.
The move comes as South Korean banks explore launching won-pegged stablecoins, and as lawmakers propose new rules to govern their use. These developments reportedly pushed the central bank to step up its efforts.
Crypto remains widely popular in South Korea. Just last month, the country elected Lee Jae Myung as president, who campaigned on a pro-crypto agenda that includes legalizing stablecoins and crypto ETFs.
Bank of Korea Stablecoin Plans Prompt Digital Currency Revamp
BOK officials said the rebranding reflects the unit’s growing role as an active business department exploring real-world digital currency initiatives.
As part of the overhaul, two other teams have also been renamed and given new mandates. The Digital Currency Technology Team will lead research and investigation into digital currency systems, while the Digital Currency Infrastructure Team will focus on building a voucher management platform based on deposit tokens and developing a test environment for CBDC applications.
Despite the delay, BOK officials say work will continue. The newly restructured Digital Currency Team will move forward with related projects and may resume CBDC testing once “legal uncertainties are resolved,” according to reports.
In June, eight of South Korea’s leading banks revealed plans to launch a won-pegged stablecoin by late 2025 or early 2026.
At the same time, Bank of Korea Deputy Governor Ryoo Sang-dai expressed support for allowing banks to take the lead as initial stablecoin issuers, with the possibility of gradually opening the market to other sectors in the future.