South Korea strikes hard! The Central Bank establishes a department for encryption assets, is the era of the won stablecoin about to arrive?

South Korea has long been regarded as a technology powerhouse in Asia, and its development in the digital currency sector has also attracted significant attention. Recently, the Bank of Korea (BOK) released important news, announcing the establishment of a virtual asset department responsible for monitoring the crypto market and discussing legislation related to this asset class. This move comes at a time when the domestic stablecoin momentum in South Korea is strong, indicating that the country's layout in the digital currency field will accelerate further.

South Korea's Bank Establishes New Virtual Assets Department: Leading Discussions on Korean Won Stablecoin

According to a report by the local news agency News1 on Tuesday, the Bank of Korea (BOK) has established a new virtual asset department under the Financial Payment Systems Bureau of the central bank. This department is expected to lead discussions within the Bank of Korea regarding the Korean won stablecoin.

This reform is not limited to the establishment of departments. The Bank of Korea has also officially renamed its digital currency research team to the digital currency team, marking a shift for the institution from theoretical exploration to a more active digital currency project. The Block has reached out to the Bank of Korea for further comments.

Strong Momentum for Local Stablecoins in South Korea: Driven by Dual Policies and Market

As the United States, under the leadership of President Donald Trump, begins to support dollar-backed stablecoins, discussions around stablecoins in South Korea are starting to gain attention.

Policy level: The newly elected South Korean President Lee Jae-myung vowed to promote a stablecoin market based on the local currency to prevent capital flight. Meanwhile, members of the ruling party have submitted a bill to establish a basic regulatory framework for the won stablecoin. This demonstrates the South Korean government's proactive attitude towards developing local stablecoins.

Private sector follow-up: The private sector has also quickly followed suit, with leading banks and payment service providers in South Korea submitting trademark applications for stablecoin stock codes. This indicates strong confidence in the potential of the Korean won stablecoin.

The Suspension of the CBDC Project and the Market Demand for Stablecoins

According to reports, due to the rapid development of stablecoins, the Bank of Korea has recently decided to suspend its CBDC project. Bank Governor Lee Chang-yong previously stated that he believes there is market demand for a won stablecoin, but warned that allowing non-bank institutions to participate could lead to chaos. This reflects the Bank of Korea's vigilance regarding the potential risks while promoting the development of digital currency.

Conclusion:

The establishment of a virtual asset department by the Bank of Korea is an important step in its advancement in the digital currency field. This initiative will not only accelerate discussions and legislative processes regarding the Korean won stablecoin but also indicates that South Korea's layout in the digital currency sector will become more proactive. With the strong development momentum of local stablecoins, South Korea is expected to secure a position in the digital currency competition in Asia and even globally.