Bank of Korea's New Governor Prioritizes CBDCs Over Stablecoins in First Policy Address

In brief

• New Bank of Korea Governor Shin Hyun-song emphasized central bank digital currencies and bank-issued deposit tokens in his first policy address.
• The governor highlighted payment system stability through Project Hangang while notably omitting any mention of stablecoins.
• The address comes amid ongoing legislative debates over stablecoin regulation in South Korea.

Bank of Korea Governor Shin Hyun-song, who began his four-year term Tuesday, delivered his first address in office prioritizing central bank digital currencies and bank-issued deposit tokens while omitting any mention of stablecoins.

Per reports in local media, the governor opened his address by declaring, “In this time of transition, we must again ask what the role of the Central Bank is.”

Shin stated that through the second phase of its retail CBDC and deposit token pilot Project Hangang, the bank would, “increase the usability of CBDC and deposit tokens,” while also highlighting its role in cross-border tokenization effort Project Agora.

Silence on stablecoins

The omission of stablecoins marks a shift from Shin's earlier position. During his confirmation hearings, he acknowledged a role for private stablecoins, stating that they would, "be able to coexist complementarily and competitively with deposit tokens” and would play a "sufficient role" within the future currency ecosystem.

Meanwhile, KRW1 debuted in February as South Korea's first fully regulated stablecoin through a partnership between crypto custody service provider BDACS and Woori Bank. The country’s proposed Digital Asset Basic Act, which remains under legislative consideration, would set rules for digital assets including stablecoin issuance.

The governor's silence on stablecoins comes amid an ongoing tussle between ruling and opposition parties over stablecoin regulation. The Bank of Korea has been actively engaging with the digital currency debate, with Shin previously meeting with bank chiefs in mid-2025 as discussions intensified. In 2023, the central bank partnered with Samsung to explore offline CBDC payments, signaling its commitment to state-backed digital currency solutions.

Beyond digital currencies, Shin outlined sweeping financial market reforms. The governor, who will chair his first policy meeting on May 28, announced plans to actively promote the internationalization of the Korean won, including pushing for 24-hour operation of the foreign exchange market and establishing an offshore won payment system, according to local reports.

On monetary policy, Shin signaled caution, after the central bank maintained its benchmark rate at 2.50% amid geopolitical uncertainties earlier this month. "Given the uncertainty in inflation and growth paths, monetary policy should be conducted in a cautious and flexible manner to ensure stability in prices and financial markets," Shin said.

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