The newly appointed governor of the Bank of Korea, Shin Hyun song, has outlined a clear focus on central bank digital currency (CBDC) development and deposit tokens in his first official inauguration speech, while notably omitting any reference to stablecoins.
Speaking at the central bank headquarters in Seoul, Shin emphasized the importance of strengthening payment systems and supporting structural reforms in the national economy. He also highlighted efforts to enhance the global role of the Korean won within an increasingly digital financial ecosystem.
CBDC Expansion Through Project Hangang and Global Cooperation
Shin confirmed that the Bank of Korea will advance its CBDC strategy through the second phase of Project Hangang, a national initiative focused on digital currency experimentation and infrastructure development. The central bank also plans to expand the use of deposit tokens as part of broader modernization efforts in financial settlement systems.
In addition, the Bank of Korea intends to collaborate with international initiatives such as Project Agora to improve cross border payment efficiency and strengthen the global usability of the Korean won in digital form.
Stablecoins Left Out Amid Regulatory Uncertainty
Despite growing legislative momentum in South Korea to regulate and potentially legalize won-backed stablecoins, Shin made no mention of them in his address. This omission stands out as policymakers continue working on the Digital Asset Basic Act, which is expected to define the country’s digital asset framework.
Previously, Shin expressed skepticism toward stablecoins during his time at the Bank for International Settlements, arguing that they face structural limitations compared to sovereign currencies. However, he has more recently acknowledged that regulated stablecoins could potentially coexist alongside CBDCs in future financial systems.
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