Bank of Korea Governor Shin Hyun-song used his first speech in office to set out the central bank’s digital finance direction.
Summary
- Shin backed CBDC and deposit tokens in his first speech as Bank of Korea governor.
- The speech omitted stablecoins despite South Korea’s ongoing push for a local framework.
- Project Hangang and Project Agora remained central to Korea’s digital payments strategy under Shin.
He said the bank will support innovation in blockchain-based finance while protecting the stability of payment and settlement systems in South Korea.
Shin began his four-year term on Tuesday at the Bank of Korea headquarters in Seoul. In his inauguration speech, he said the central bank would work to support the Korean won in a more digital financial system. He also linked that effort to the bank’s broader role in price stability and economic reform at a time of supply pressure tied to developments in the Middle East.
A key part of Shin’s message focused on central bank digital currency and deposit tokens. He said the Bank of Korea will expand their use through the second phase of Project Hangang, which has served as the central bank’s test bed for digital money and related payment tools.
Shin also said the Bank of Korea will work with global projects such as Project Agora. That step points to a wider goal of improving the role of the Korean won in cross-border payments. In the speech, he said the bank would protect payment system stability and promote wider global use of the national currency in a digital environment.
In addition, Shin did not mention won-based stablecoins in the speech. That stood out because lawmakers in South Korea have been working on a legal framework for local stablecoins under the proposed Digital Asset Basic Act. The bill aims to set broader rules for digital assets, including stablecoin activity.
The issue has gained more attention as major local financial firms prepare for stablecoin and digital asset-based payments. Discussions around the bill have slowed, with more debate expected after the June 3 regional elections. Against that backdrop, Shin’s decision to focus on CBDCs and deposit tokens, while leaving out stablecoins, drew attention to where the central bank may place its near-term priority.
Past views add context to the policy shift
Shin’s earlier record has added to that discussion. During his time at the Bank for International Settlements, he took a critical view of stablecoins. In one report, he argued that stablecoins could not replace currencies because different issuers could create fragmentation across the payment system.
At the same time, reports have said his position has become more flexible in recent months. He has reportedly said won-based stablecoins should be established and exist alongside CBDCs. That makes his latest speech notable, even without a direct rejection of stablecoins.
The remarks suggest the Bank of Korea is now placing more public emphasis on state-backed digital money and tokenized bank deposits as it shapes the next phase of its digital payments strategy.
The central bank had reportedly paused parts of its CBDC work last June as interest in won-based stablecoins grew. Under Shin, that balance now appears to be shifting again. His opening message centered on official digital currency tools, leaving the stablecoin debate to lawmakers and the market for now.
