The South Korean Central Bank upgrades its system to promote research on stabilizing the won and developing digital currency CBDC.
The establishment of the Digital Asset Group and renaming the Digital Currency Office aims to enhance market supervision and technology development, serving the national cryptocurrency strategy.
- The Bank of Korea establishes a dedicated digital asset group to monitor stablecoin and digital assets.
- Renaming the Digital Currency Office, dividing it into two teams: Technology and Infrastructure.
- Continuing to promote CBDC research and address challenges from private stablecoins.
How has the Bank of Korea changed its system to respond to cryptocurrency trends?
The South Korean Central Bank established a new Digital Asset Group and upgraded the Digital Currency Office with a more specialized structure.
This adjustment aims to improve responsiveness to digital currency fluctuations and promote the development of modern digital banking solutions.
What tasks are assigned to the Digital Asset Group in the bank's operations?
The new group is responsible for monitoring the market and legal processes related to stablecoins and digital assets in South Korea.
This is an important step for the central bank to timely capture rapidly changing legal and technological development trends in the cryptocurrency field.
The establishment of the Digital Asset Group will help enhance early risk warning capabilities and prepare appropriate policies for cryptocurrencies, especially stablecoins.
Park Yong-joon, Head of the South Korean Central Bank, 2024
For example, according to the 2023 Korean Monetary Research Institute report, closely monitoring stablecoins helps minimize the risk of liquidation disruption in the financial system.
How does the Digital Currency Office operate with its two technology and infrastructure teams?
The Digital Currency Office is divided into two teams: the Technology Team focuses on research and development of digital currency-related technical solutions, while the Infrastructure Team specializes in building technical platforms for the CBDC system.
This division aims to enhance technology quality, from Smart Contract development to ensuring a stable network system, and to facilitate the integration of various Tokens and digital wallets in the future.
This two-team system will help accelerate the CBDC completion process, ensuring security and scalability when applied in practice.
Kim Ji-hyun, Director of the Digital Currency Office, 2024
What are the Bank of Korea's plans for CBDC and stablecoins in the future?
The bank is committed to continuing CBDC research and proactively facing challenges from the strong development of private stablecoins.
This is not only to ensure national financial stability but also to integrate new technologies, improve payment efficiency, and make cryptocurrency transactions safer.
In 2023, South Korea successfully tested the beta version of CBDC with the ability to process up to 10,000 transactions per second, confirming its determination to develop digital currency in the near future.
How can the tasks of the Digital Asset Group and Digital Currency Office be compared?
| Unit | Main Task | Objective |
|---|---|---|
| Digital Asset Group | Monitor cryptocurrency market and stablecoin legal processes | Risk warning and promoting appropriate policies |
| Digital Currency Office (2 teams) | Technology: Technical research and development; Infrastructure: Building CBDC platform | Ensure advanced technology and stable operation |
Frequently Asked Questions
What is the purpose of the Bank of Korea establishing the Digital Asset Group?
This group monitors market fluctuations and legal processes related to stablecoins and digital assets to minimize financial risks.
What teams are in the Digital Currency Office and what are their tasks?
It consists of two teams: the Technology Team researching technical solutions and the Infrastructure Team developing the CBDC platform to ensure stable operation.
What are the bank's plans for CBDC development?
Continue upgrading technology and completing CBDC trials to deploy officially in the near future.
What is the importance of stablecoins for the central bank?
Stablecoins affect liquidation and financial stability, so they need to be closely monitored to ensure system safety.
What challenges from private stablecoins is the bank facing?
These are issues of risk management, unsynchronized legal frameworks, and competitiveness with CBDC in the digital currency market.
