The Bank of Korea is taking active steps in the cryptocurrency sector by forming a dedicated Virtual Asset Team and reorganizing its existing departments. This reflects the growing interest in stablecoins and other virtual assets in the country.
Formation of the Virtual Asset Team
The Bank of Korea has created a new Virtual Asset Team. This team will monitor the cryptocurrency market and respond to legislative changes, including stablecoin regulations. This is part of the bank's effort to better engage with the evolving sector and consider local banks' interest in issuing stablecoins tied to the South Korean won.
CBDC Testing Delayed
The Bank of Korea has temporarily halted its retail CBDC pilot originally scheduled from April 1 to June 30. This decision arises from growing concerns among local banks regarding costs and infrastructure. Despite this pause, interest in the project remains strong, and discussions may resume once regulatory clarity improves.
Preference for Stablecoins
In a notable development, eight major South Korean banks announced their plans to launch a stablecoin pegged to the won by late 2025 or early 2026. The BOK deputy governor supported this move, stating that banks should lead as primary issuers of stablecoins before the framework expands to other industries.
South Korea is taking significant steps toward integrating digital currencies and stablecoins, indicating a sustained interest in their long-term use in the future.
