The Bank of Korea is set to establish a virtual asset committee to oversee the cryptocurrency market, reflecting growing interest in digital currencies. The central bank has renamed its teams, including the CBDC research group, now called the Digital Currency Team, to emphasize its focus on practical applications rather than theoretical research. The Virtual Asset Team will engage in discussions regarding stablecoins and coordinate with the government during legislative processes. Recent stablecoin legislation played a significant role in prompting the formation of this new team. Amid a growing pro-crypto sentiment in South Korea, major banks are also moving towards launching a stablecoin pegged to the won as pressure mounts for a shift in digital currency strategy. The central bank’s CBDC test was postponed but may resume as legal uncertainties are addressed, emphasizing the necessity of digital currency in South Korea's future.

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