The Bank of Korea’s new governor, Shin Hyun-song, has outlined the central bank’s digital currency priorities. His focus centers heavily on central bank digital currencies (CBDCs) and bank tokens, deliberately bypassing stablecoins in his first public speech.
During his inaugural address on April 21, 2026, Shin signaled a concerted policy push toward integrating state-backed and commercial bank-issued digital assets into the national financial infrastructure. He affirmed plans to advance Phase II of Project Hangang, a wholesale CBDC initiative designed to test blockchain-based settlement and deposit tokens for large-value transactions.
The Bank of Korea, South Korea’s central monetary authority, is actively shaping the regulatory parameters for digital assets. By focusing on CBDCs and bank-issued tokens, the central bank indicates a strict preference for maintaining monetary control within established institutional frameworks.
International Collaboration and Policy Strategy
Shin highlighted the central bank’s commitment to international digital payment frameworks. He specifically pointed to the Agora Project, an initiative led by the Bank for International Settlements (BIS) that explores cross-border tokenization and settlement efficiencies among multiple global central banks.
The emphasis on bank tokens points to a strategy where existing regulated financial institutions manage the issuance and ledger mechanics of digital money. Shin previously argued that deposit tokens maintain the trust inherent in the traditional banking system while ensuring compliance with anti-money laundering laws and foreign exchange controls.
The Stablecoin Contradiction
Notably absent from today’s policy directive was any mention of stablecoins. The omission suggests ongoing regulatory caution toward privately managed pegged assets within the central bank’s core operational strategy.
This silence contrasts with Shin’s recent parliamentary confirmation hearing on April 15. During that session, he adopted a flexible stance, suggesting that CBDCs and private stablecoins could operate in tandem. This marked a shift from his previous tenure at the BIS, where he frequently warned against the financial contagion risks associated with private stablecoins.
The legal framework for private digital assets in South Korea remains a subject of intense legislative debate. The ruling Democratic Party actively supports the introduction of won-based stablecoins and is preparing a relevant regulatory bill.
This dynamic sets a complex regulatory tone for South Korea’s digital asset market. The central bank is actively building infrastructure for state oversight and traditional banking integration, while lawmakers simultaneously debate the legal scope for private stablecoin issuers.
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