Bank of Korea Governor Prioritizes CBDCs, Omits Stablecoins

Bank of Korea Governor Shin Hyun-song began his four-year term on Tuesday and used his first policy address to prioritize central bank digital currencies and bank-issued deposit tokens while omitting private stablecoins.

He opened the address by asking, “In this time of transition, we must again ask what the role of the Central Bank is.” The bank plans to push the second phase of its retail CBDC and deposit token pilot, Project Hangang, to increase usability and highlighted a cross-border tokenization effort called Project Agora. Shin will chair his first policy meeting on May 28.

During confirmation hearings, he acknowledged a role for private stablecoins, saying they could “be able to coexist complementarily and competitively with deposit tokens” and would play a “sufficient role” in the future currency ecosystem. Lawmakers are still negotiating the proposed Digital Asset Basic Act, which would set rules for digital assets including stablecoin issuance.

Private-sector work on won-backed stablecoins has continued. In February, digital asset custodian BDACS and Woori Bank launched KRW1, described by its issuers as South Korea’s first fully regulated won-backed stablecoin, after a proof of concept validated fiat deposits, token issuance and blockchain verification.

The central bank has pursued digital currency projects for several years, including a 2023 partnership with Samsung to test offline CBDC payments. Shin held meetings with bank chiefs in mid-2025 as regulatory discussions intensified.

On monetary policy, the Bank of Korea held its benchmark rate at 2.50% earlier this month. In the address Shin urged that policy be conducted in a cautious and flexible manner given uncertainty in inflation and growth, to maintain price and financial market stability.

He also outlined plans to promote the international use of the won by pushing for 24-hour foreign exchange market operations and establishing an offshore won payment system.

The speech concentrated on state-backed digital currency projects and wider market reforms while leaving unresolved the role and regulation of privately issued stablecoins as Parliament continues its deliberations.