Bank of Korea Forms Virtual Asset Team to Advance Stablecoin and Crypto Plans

Highlights:

• Bank of Korea creates virtual asset unit to lead stablecoin talks and crypto monitoring.
• BOK also renames the CBDC team to show a move from research to real digital work.
• The bank delays CBDC test as stablecoin support grows and banks raise cost concerns.

The Bank of Korea (BOK), the country’s central bank, has formally introduced a new Virtual Asset Division, also known as the “Cryptoassets Department” or “Virtual Asset Team.” According to local outlet News1, the new virtual asset unit sits under the Financial Payment Systems Bureau. It will monitor the crypto market, study risks, and join policy talks on stablecoins and digital currencies. This move shows the central bank’s shift from just studying CBDCs to working on real digital currency projects.

On July 29, the Bank of Korea announced an organizational restructuring, officially establishing a“Virtual Asset Team”and renaming the“Digital Currency Research Office”to the“Digital Currency Office”to strengthen regulatory oversight and policy response capabilities for the…

— Wu Blockchain (@WuBlockchain) July 30, 2025

BOK Expands Digital Currency Efforts with Virtual Asset Team

BOK sees the new team as an important link between government regulations and the private sector’s work in digital finance. The creation of this unit comes shortly after the election of President Lee Jae Myung, who has shown strong support for crypto. His campaign included pledges to approve both crypto exchange-traded funds (ETFs) and stablecoins.

As part of its new structure, the Bank of Korea has also changed the name of its Digital Currency Research Team to the Digital Currency Team. This shows a shift toward more direct work on digital currency projects. The updated team will work with two new groups. The Digital Currency Technology Team will focus on research, while the Digital Currency Infrastructure Team will work on building platforms for digital vouchers and deposit tokens.

The BOK had planned to test a retail CBDC from April to June this year. However, the plan was delayed due to rising costs and unclear legal rules. Officials said they may restart the program once proper regulations are in place. Still, BOK Governor Lee Chang-yong said that digital currency is an important step forward, no matter the form it takes.

BANK OF KOREA HALTS CBDC PLANS AMID RISING LOCAL STABLECOIN ADOPTION

The Bank of Korea has paused its central bank digital currency (CBDC) project as privately issued stablecoins gain rapid traction.

The move signals shifting priorities in South Korea’s digital currency… pic.twitter.com/pas34U5h9e

— Crypto Town Hall (@Crypto_TownHall) June 30, 2025

South Korean Banks Lead Stablecoin Move as CBDC Plans Slow Down

South Korean banks are now taking the lead in the stablecoin space. They believe that stablecoins backed by banks and tied to the won are a better option than central bank digital currencies. Eight leading banks aim to launch stablecoins by late 2025 or early 2026. Their goal is to join the growing digital payment market without depending on a central CBDC system.

Deputy Governor Ryoo Sangdai supports this idea. He said banks should be the first to issue stablecoins before other industries join in. This shows a clear shift in South Korea’s digital currency plans. Banks now prefer real-world, market-based solutions over government-run systems.

Though the central bank continues to work on digital assets, stablecoins could shape the nation’s financial future. The Bank of Korea has signaled its intent to steer the country’s digital finance strategy. This shows its increasing focus on creating a secure and well-regulated digital financial system in South Korea.