South Korea’s central bank has taken a major step forward in embracing cryptocurrency by forming a dedicated virtual asset committee. This new team will actively monitor the crypto market and explore central bank digital currency development as the country ramps up efforts to stay ahead in the digital finance space.

The Bank of Korea has renamed and refocused its CBDC unit and stated the Virtual Asset Team will also lead responses to stablecoin discussions and support coordination with the government on crypto legislation. This move comes as South Korean banks consider launching stablecoins tied to the national currency the won.

Crypto continues to gain strong support in South Korea especially after the election of President Lee Jae Myung who ran on a pro-crypto agenda. His platform included policies to allow stablecoins and crypto exchange-traded funds showing the country’s growing commitment to digital innovation in finance.