The Bank of Korea has restructured its central bank digital currency (CBDC) research initiatives and established a new regulatory body to oversee cryptocurrency and stablecoin developments. The central bank renamed its Digital Currency Research Team to the Digital Currency Team, signaling an operational shift toward practical CBDC implementation. Concurrently, it formed a Virtual Asset Committee to monitor crypto market trends and strengthen stablecoin regulations.
A planned retail CBDC test, originally scheduled for the second quarter of the year, was postponed following concerns from commercial banks about participation costs. The banks highlighted financial and logistical burdens associated with the trial’s infrastructure requirements.
The Digital Currency Team will continue foundational CBDC projects and may revisit retail testing once regulatory guidelines are formalized. Financial institutions are anticipated to lead stablecoin issuance efforts by late 2025 or early 2026, aligning with the central bank’s recalibrated strategy prioritizing real-world applications and stablecoin governance.
This restructuring underscores the Bank of Korea’s intensified focus on developing functional CBDC frameworks while establishing clearer oversight mechanisms for digital assets.