In response to accelerating discussions on digital asset regulation and stablecoin institutionalization, the Bank of Korea (BOK) has established a new Digital Asset Unit within its Payment and Settlement Systems Department. The unit, spun off from the existing Electronic Finance Team, will consist of fewer than six members and will focus on monitoring KRW-based stablecoin issuance and related legislation.
Meanwhile, the bank’s former “Digital Currency Research Division” has been restructured into the Digital Currency Division, now divided into two teams: Digital Currency Technology and Digital Currency Infrastructure. The former will handle privacy and IT-related research, while the latter will oversee testbed platforms involving deposit tokens and digital vouchers—part of the broader “Hangang Project” to build Korea’s CBDC infrastructure.
This organizational change reflects the central bank’s intent to play a more proactive role in shaping stablecoin policy. Lawmakers, including Reps. Kim Eun-hye and Ahn Do-gul, are preparing legislation that defines KRW stablecoins, sets issuance conditions, and establishes supervisory frameworks. Meanwhile, subtle tensions are surfacing over policy leadership between the BOK and the Financial Services Commission.
While recognizing the innovative potential of stablecoins, the BOK continues to voice concern over capital flight and unintended impacts on monetary policy. It warns that converting KRW stablecoins into USD-based assets could destabilize the FX market. As a result, the bank advocates for gradual implementation led by commercial banks, rather than rapid market deployment.
Additionally, a new Legal and Regulatory Studies Unit has been established to examine the legal implications of digital payment instruments like stablecoins and CBDCs. The group will analyze potential effects on monetary policy and recommend regulatory frameworks accordingly.
Through this reorganization, the BOK signals its intention to move beyond passive observation, taking a more active stance as a policy participant in Korea’s evolving digital finance landscape. However, concerns over capital flows and financial stability remain unresolved, meaning future legislation and rollout strategies could significantly influence market dynamics.
