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South Korea's Central Bank establishes a new cryptocurrency specialized team
The Bank of Korea announced on the 29th an organizational restructuring aimed at strengthening its response to the cryptocurrency market, including won-denominated stablecoins. A new "Virtual Asset Team" will be established on the 31st, and the "Digital Currency Research Lab" will be renamed to the "Digital Currency Office." By removing "Research" from the name, the functions as a substantive business unit have been clarified.
The cryptocurrency team is established within the Financial Payment Bureau, specializing in monitoring the won-denominated stablecoin market and legislative discussions. Within the Digital Currency Office, the Technology Team 1 is reorganized as the "Digital Currency Technology Team," and the Technology Team 2 is reorganized as the "Digital Currency Infrastructure Team." The Technology Team is responsible for research and investigation as well as personal information protection technology, while the Infrastructure Team is in charge of the deposit token-based digital voucher management platform business.
This organizational restructuring is a measure to appropriately respond to the recent active discussions on stablecoin issuance, alongside the continuity of central bank digital currency (CBDC) operations. In South Korea, President Lee Jae-myung has pledged to promote the domestic currency-denominated stablecoin market as a capital outflow prevention measure. Members of the ruling party have already submitted a bill to establish a basic regulatory framework for won-denominated stablecoins.
Lee Chang-yong, the Governor of the Bank of Korea, mentioned last year that "deposit tokens are stablecoins issued by banks." At the discussion forum on the 10th of this month, he explained that "Project Honggan (the Bank of Korea's CBDC real transaction test) is for the safe introduction of won-denominated stablecoins."
In the private sector, major banks and payment service providers in South Korea have been submitting trademark applications for stablecoin ticker symbols one after another. Against the backdrop of regulatory clarifications in the United States, discussions on stablecoins are intensifying in South Korea as well, with expectations for improved policy responsiveness due to the establishment of organizational systems within the central bank.