The Bank of Korea will launch a virtual asset committee to oversee the cryptocurrency market and has renamed its central bank digital currency (CBDC) team to emphasize its practical focus. The newly formed Virtual Asset Team will handle discussions on stablecoins and virtual assets, collaborating with the government on legislative matters. The creation of this committee is largely influenced by proposed stablecoin legislation in South Korea. Additionally, the Digital Currency Research Team has been rebranded as the Digital Currency Team to indicate a shift towards practical business development rather than theoretical research. Two other teams now focus on technology and infrastructure related to digital currencies. Despite a postponed retail CBDC test initially set for earlier this year, discussions may resume once legal uncertainties are settled. In the meantime, major South Korean banks are pushing to launch a stablecoin pegged to the won by late 2025 or early 2026, highlighting a strong interest in stablecoins over CBDCs.

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