Bank of Korea Renames CBDC Team as It Explores Stablecoin and Digital Currency Possibilities

Key Points

1. The Bank of Korea renamed its Digital Currency Research Team to the Digital Currency Team and formed a Virtual Asset Committee to oversee crypto market and stablecoin developments.

2. The retail CBDC test, originally scheduled for April to June 2025, was postponed due to concerns over participation costs voiced by banks.

3. The Digital Currency Team will continue CBDC-related projects and may resume testing once regulatory clarity is achieved.

4. Korean banks are expected to play a role in stablecoin issuance by late 2025 or early 2026.

5. The Bank of Korea's new approach emphasizes practical CBDC development and stablecoin regulations, reflecting a shift in focus.