Bank of Korea governor backs CBDC, omits won stablecoins

Shin Hyun-song began his four-year term as Bank of Korea governor with an inauguration speech Tuesday at the central bank headquarters in Seoul. He pledged to expand central bank digital currency (CBDC) work and deploy deposit tokens as part of the second phase of Project Hangang.

The governor said the bank will work with international initiatives, including Project Agora, to strengthen the Korean won’s role in cross-border payments and to prepare for changes to domestic and international payment infrastructure.

Shin did not mention won-pegged stablecoins in his remarks. Private firms in South Korea have been developing stablecoin and digital-asset payment services, while lawmakers, with presidential backing, have been drafting the Digital Asset Basic Act to set rules for local stablecoins. Work on the bill has been delayed, with discussions expected to resume after regional elections on June 3.

Last June, the Bank of Korea paused parts of its CBDC work as won-based stablecoins gained market momentum. With Shin’s inauguration, the central bank has refocused public statements on CBDCs and deposit tokens.

At the Bank for International Settlements, Shin authored a report arguing that stablecoins could not replace national currencies because of fragmentation across different tokens. He has also said won-based stablecoins could be established and coexist with CBDCs.

Shin described the central bank’s priorities:

“The central bank will protect the stability of settlement and payment systems and promote the global use of the national currency in a digitalized financial ecosystem.”

Regulators and legislators continue to negotiate the scope and timing of digital asset rules while financial firms prepare payment services tied to stablecoins and other digital assets. The governor’s speech outlined the central bank’s immediate priorities for digital currency infrastructure and international cooperation.