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

Bank of Korea Governor Shin Hyun-song, who began his four-year word Tuesday, delivered his archetypal code successful bureau prioritizing central slope integer currencies and bank-issued deposit tokens portion omitting immoderate notation of stablecoins.

Per reports successful local media, the politician opened his code by declaring, “In this clip of transition, we indispensable again inquire what the relation of the Central Bank is.”

Shin stated that done the 2nd signifier of its retail CBDC and deposit token aviator Project Hangang, the slope would, “increase the usability of CBDC and deposit tokens,” portion besides highlighting its relation successful cross-border tokenization effort Project Agora.

Silence connected stablecoins

The omission of stablecoins marks a displacement from Shin's earlier position. During his confirmation hearings, helium acknowledged a role for backstage stablecoins, stating that they would, "be capable to coexist complementarily and competitively with deposit tokens” and would play a "sufficient role" wrong the aboriginal currency ecosystem.

Meanwhile, KRW1 debuted successful February arsenic South Korea's archetypal afloat regulated stablecoin done a concern betwixt crypto custody work supplier BDACS and Woori Bank. The country’s proposed Digital Asset Basic Act, which remains nether legislative consideration, would acceptable rules for integer assets including stablecoin issuance.

The governor's soundlessness connected stablecoins comes amid an ongoing tussle betwixt ruling and absorption parties implicit stablecoin regulation. The Bank of Korea has been actively engaging with the integer currency debate, with Shin antecedently meeting with slope chiefs successful mid-2025 arsenic discussions intensified. In 2023, the cardinal slope partnered with Samsung to research offline CBDC payments, signaling its committedness to state-backed integer currency solutions.

Beyond integer currencies, Shin outlined sweeping fiscal marketplace reforms. The governor, who volition seat his archetypal argumentation gathering connected May 28, announced plans to actively beforehand the internationalization of the Korean won, including pushing for 24-hour cognition of the overseas speech marketplace and establishing an offshore won outgo system, according to local reports.

On monetary policy, Shin signaled caution, aft the cardinal slope maintained its benchmark complaint astatine 2.50% amid geopolitical uncertainties earlier this month. "Given the uncertainty successful ostentation and maturation paths, monetary argumentation should beryllium conducted successful a cautious and flexible mode to guarantee stableness successful prices and fiscal markets," Shin said.