The Bank of Korea has announced the establishment of a virtual assets committee and the renaming of its digital currency team, reflecting the growing interest in cryptocurrencies in the country.
Creation of the Virtual Assets Committee
The central bank of South Korea plans to create a virtual assets committee to oversee the cryptocurrency market. The new committee will also deal with issues related to the legislative discussions of stablecoins and virtual assets, alongside governmental cooperation during the legislative process.
Renaming of the CBDC Research Team
The Bank of Korea's research team focused on CBDC-related projects has been renamed to the "Digital Currency Team." This change emphasizes the team's practical approach to exploring digital currency initiatives rather than just focusing on theoretical research.
Stablecoins and CBDC Testing
The Bank of Korea postponed its CBDC testing at the end of June due to governmental support for local currency stablecoins. The retail CBDC test was intended for April 1 to June 30 but will continue once legal uncertainties are resolved. Meanwhile, eight major South Korean banks are planning to launch a stablecoin pegged to the won by late 2025 or early 2026.
The establishment of the virtual assets committee and the renaming of the internal digital currency team indicate South Korea's readiness to adapt to the rapidly evolving world of cryptocurrencies and digital currencies, which may further foster the growth of this sector.
