The Bank of Korea will set up a virtual asset committee in charge of overseeing the crypto currency market and amplifying regulatory measures.
Officials confirmed the committee will handle discussions regarding stablecoins and other virtual assets, coordinating with government representatives during legislative proceedings.
Legislators put forward the bills for stablecoins, and local banks are contemplating the introduction of stablecoins tied to the local currency.
Cryptocurrency use in South Korea became even more popular after the election of President Lee Jae Myung, a strong digital assets advocate.
He ran on the platform of increased acceptance of stablecoins and cryptocurrency exchange-traded funds, the message that attracted the youth throughout the entire nation.
Bank of Korea restructures digital divisions
The Bank of Korea also changed the titles of its research divisions on CBDC, reflecting their practical roles in addition to research activities.
The Bank of Korea now calls the Digital Currency Research Group the Digital Currency Group, emphasizing projects that directly investigate digital initiatives.
Two other divisions also received new titles, for example, the Digital Currency Technology Team and the Digital Currency Infrastructure Team.
The Technology Team will be responsible for research and inquiries, and the Infrastructure Team will develop voucher platforms incorporating deposit token-based systems.
The restructuring aims to highlight the central bank’s effort toward building the pillars of future digital financial systems, the officials said.
Government shifts support toward Crypto Stablecoins
The central bank deferred its retail test of the CBDC on 29 June because support from the government had shifted in favor of ideas for stablecoins.
The Bank of Korea first announced the test in November 2023 and scheduled it from April 1 to June 30.The digital currency unit will also continue to manage related projects, and the organization will resume pilot testing when related legal complexities are removed.
Governor Lee Chang yong highlighted the immediate requirement of the country for the use of digital currency in either the form of CBDCs or the use of stablecoins.
In the meantime, eight of the largest South Korean banks will introduce a won-pegged stablecoin sometime in 2025 or early 2026.
Deputy Governor Ryoo Sangdai also suggested the initial introduction of banks with stablecoins and the gradual entry of other industries.
