Bank of Korea to launch virtual asset committee to monitor crypto

Key Points

1. The Bank of Korea is launching a Virtual Asset Committee and renaming its Digital Currency Research Team to the 'Digital Currency Team' to focus on practical implementation rather than just theoretical research.

2. Two other teams, the Digital Currency Technology Team and Digital Currency Infrastructure Team, will handle digital currency-related research, investigation, and platform testing.

3. The Bank of Korea postponed its retail CBDC test due to concerns over participation costs but plans to resume once legal uncertainties are resolved.

4. South Korean banks are showing interest in stablecoins pegged to the country's currency, which is a primary driver behind the new team's creation.

5. Crypto is popular in South Korea, and the country has recently elected a president who is supportive of the sector.