According to the report, citing the Central Bank of Korea (BOK), the new virtual asset sector is already under the Central Bank’s Financial Payments System Bureau, and is expected to lead internal discussions on a Korean dollar-based stabilization currency. At the same time, BOK officially renamed its digital currency research team the digital currency team, marking a shift from theoretical exploration to a more active digital currency project.
As the United States, under the leadership of President Donald Trump, began to support the United States dollar-backed stabilization currency, South Korea's discussions on the currency began to warm. The recently elected President of Korea, Lee Jae-ming, pledged to promote a stable currency market based on the local currency as a measure to prevent capital outflows, and a member of Parliament of the ruling party has submitted a bill establishing a basic regulatory framework for the KRW stable currency.
These developments were quickly responded to by the private sector, with the leading banks and payment service providers in Korea submitting a trademark application for a stable currency code. Recently, it was reported that BOK decided to temporarily suspend its CBDC project as a result of progress in the currency stabilization. Central Bank Governor Li Chang Yong had previously stated that he considered it necessary to introduce the KRW stabilization currency, but warned that allowing non-bank institutions to participate could cause confusion.