Bank of Korea Forms Crypto Oversight Committee, Restructures CBDC Teams for Practical Development

Bank of Korea Takes Bold Step Toward Crypto Regulation and Digital Currency Innovation

The Bank of Korea (BOK) is stepping up its involvement in the digital asset ecosystem by launching a Virtual Asset Committee to monitor South Korea's dynamic crypto market. Alongside this, the bank has restructured and renamed its CBDC research units, signaling a shift from theoretical research to practical implementation.

According to a Yonhap News report on July 29, the new Virtual Asset Team will not only oversee market trends but will also engage in regulatory discussions around stablecoins and collaborate with government bodies as the country pushes forward new digital asset legislation.

Why the Move? Stablecoins and Pro-Crypto Policy Drive Change

This strategic move comes as South Korean lawmakers prepare new stablecoin legislation and major banks explore launching their own won-pegged stablecoins.

The country's political climate is also turning favorable for crypto. In June, President Lee Jae Myung was elected after running on a pro-crypto platform, pledging support for crypto ETFs and stablecoin adoption—moves that likely accelerated the BOK’s pivot.

Did you know? South Korea consistently ranks among the top countries for crypto adoption, especially among younger investors.

CBDC Teams Restructured for Real-World Execution

The Bank of Korea has reorganized its central bank digital currency (CBDC) divisions to reflect a shift from academic research to practical development. The changes include both rebranding and the creation of new units focused on implementation.

• Digital Currency Research Team → now the Digital Currency Team, tasked with leading applied CBDC projects and driving the bank’s strategic digital currency roadmap.

• Digital Currency Technology Team (new) – focused on technical research, innovation testing, and evaluating emerging digital currency solutions.

• Digital Currency Infrastructure Team (new) – responsible for building the backend infrastructure, including a digital voucher system and token-based settlement platform.

These updates mark a significant step toward turning South Korea’s CBDC ambitions into operational reality, aligning internal capabilities with the country's broader digital finance goals.

The Bank of Korea’s main office. Source: Wikimedia Commons

Related: South Korea’s FSS Urges Asset Managers to Limit Crypto Exposure in ETFs

CBDC Retail Test Postponed, But Not Cancelled

Although the pilot phase of South Korea's retail CBDC program, which was scheduled to conclude on June 30, has been delayed, the central bank says work continues.

The test was postponed due to:

• Government support for stablecoins over CBDCs

• Bank concerns about the costs of participating in trials

However, BOK officials noted that CBDC-related development will continue and may resume in full once legal uncertainties are clarified.

“Regardless of form, digital currency is a necessity for South Korea’s future,” said BOK Governor Lee Chang-yong, emphasizing long-term commitment to innovation in payments.

Banks Prioritize Stablecoins Over CBDCs

In a parallel development, eight leading South Korean banks revealed plans in June 2025 to issue a won-pegged stablecoin by late 2025 or early 2026.

BOK Deputy Governor Ryoo Sangdai has publicly supported the idea, noting that banks should be the primary issuers of stablecoins in the early stages, with potential expansion to non-financial sectors in the future.

Final Thoughts: South Korea Solidifies Its Digital Asset Strategy

The Bank of Korea decision to establish a dedicated crypto oversight team and restructure its CBDC units marks a significant policy evolution. It reflects the nation's broader shift from cautious observation to proactive leadership in digital finance.

With stablecoins gaining traction, regulatory frameworks under development, and CBDC infrastructure moving forward, South Korea is emerging as a serious player in the next generation of global finance.

Related: Bank of Korea Takes Cautious Stance on Bitcoin Reserve Amid Growing Debate