In his first address, Bank of Korea Governor Shin Hyun-song, who commenced a four-year term this week, emphasized the importance of central bank digital currencies (CBDCs) and bank-issued deposit tokens while notably excluding any reference to stablecoins. Local media reports indicate that the governor began by questioning the evolving role of Central Banks in transitional times.
Shin outlined plans under Project Hangang’s second phase to enhance the functionality of CBDCs and deposit tokens, also emphasizing their integration into cross-border tokenization through Project Agora. This focus marks a departure from his earlier stance where he had recognized a potential complementary role for private stablecoins alongside deposit tokens during confirmation hearings.
The absence of any mention of stablecoins is particularly noteworthy given the ongoing regulatory debate in South Korea, where KRW1 emerged as the nation’s first fully regulated stablecoin through a partnership involving BDACS and Woori Bank. The proposed Digital Asset Basic Act, still under legislative review, aims to regulate digital assets including stablecoin issuance.
This silence occurs against the backdrop of political disputes over stablecoin regulation. Earlier this year, the Bank of Korea engaged deeply in digital currency discussions, with Shin meeting bank leaders in mid-2025 and partnering with Samsung in 2023 to explore offline CBDC payments, showcasing its commitment to government-backed digital currencies.
Shin also detailed ambitious reforms for financial markets during his speech. He announced plans to further the internationalization of the Korean won by advocating for a 24-hour foreign exchange market operation and setting up an offshore won payment system, as reported locally.
Regarding monetary policy, Shin expressed a cautious approach, following the central bank’s decision to maintain its benchmark rate at 2.50% due to geopolitical uncertainties. He emphasized that monetary policy should be executed flexibly and cautiously to ensure price stability and financial market equilibrium.