Bank of Korea Forms New Digital Currency Teams Amid Stablecoin Push

South Korea’s central bank is stepping up its efforts to engage with the fast-evolving crypto sector by forming a dedicated Virtual Asset Team and revamping its existing CBDC departments to focus more actively on digital currency exploration. The move reflects growing interest in stablecoin and other virtual assets within the country, following a surge in crypto-related political support and industry engagement.

According to a report by Yonhap News on Tuesday, the Bank of Korea (BOK) said its newly created Virtual Asset Team will oversee crypto market monitoring and respond to ongoing legislative developments, including stablecoin regulations and government collaboration. 

This initiative is seen as a response to domestic banks showing interest in issuing stablecoins pegged to the South Korean won, as well as lawmakers pushing forward relevant legislation.

The central bank has also renamed its “Digital Currency Research Team” to the more action-oriented “Digital Currency Team.” A BOK official explained that the change was aimed at indicating a transition from passive research to practical business engagement in the digital currency space. 

CBDC Test Delayed but Not Dismissed

Two additional teams were reorganized as part of this shift — the “Digital Currency Technology Team,” which will lead research and analysis of digital currency-related technologies, and the “Digital Currency Infrastructure Team,” which will build a digital voucher management platform and test infrastructure based on deposit tokens.

Although the Bank of Korea paused its ongoing retail CBDC pilot on June 29, officials confirmed that interest in the project remains strong. 

The pilot phase, originally scheduled to run from April 1 to June 30, was postponed due to mounting concerns from local banks about costs and infrastructure challenges. However, central bank officials noted that discussions could resume once there’s more regulatory clarity.

Governor Lee Chang-yong reaffirmed the long-term importance of digital currencies for the country, stating that South Korea will need such systems in the future, regardless of the exact model chosen.

Banks Prefer Stablecoin over CBDC

In a notable development, eight major South Korean banks announced in June that they are preparing to launch a won-pegged stablecoin by late 2025 or early 2026. BOK deputy governor Ryoo Sangdai supported this direction, saying banks should take the lead as primary stablecoin issuers before the framework expands to other industries.

With rising political support and regulatory momentum, South Korea appears to be laying serious groundwork for both CBDCs and stablecoin integration.