Hyun-Song Shin, the newly appointed governor of the Bank of Korea, expressed support for central bank digital currencies (CBDCs) and tokenized deposits in his first public address after being sworn in for a four-year term in Seoul.
Shin said the Bank of Korea will move ahead with the second phase of Project Hangang, the bank-led pilot that tests a blockchain-based wholesale CBDC system. He also highlighted international collaboration efforts such as the Agora Project — launched in April 2024 by the Bank for International Settlements (BIS) alongside seven central banks to study tokenized cross-border payments — noting these initiatives could enhance the Korean won’s role in digital payments.
Although prior reports indicated Shin had been open to won-pegged stablecoins, he did not address stablecoins in the inaugural speech. South Korea’s stablecoin legislation remains stalled amid disagreement between regulators and lawmakers over whether issuance of won-linked tokens should be restricted to commercial banks or allowed for fintechs and technology firms.
Shin warned of growing uncertainty from geopolitical developments, including tensions in the Middle East and their impact on oil prices. He said the central bank must respond to those shocks, ongoing inflationary pressures and shifts in the global economy, adding: “We must strive for price and financial stability through the operation of prudent and flexible monetary policy.”
Shin previously served as an economic adviser at the BIS from May 2014 to March 2026 and led its Monetary and Economic Department beginning in January 2025. Last month he published an academic paper arguing that stablecoins lack a key attribute of money — “unity” — because blockchain networks are fragmented across chains with differing fees, security and decentralization.
Separately, South Korea’s Ministry of Economy and Finance is preparing a regulatory sandbox pilot to use blockchain-based payments and tokenized deposits for selected government spending. The initial phase, to be launched in Sejong City with limits on timing and spending categories, aims for a wider rollout in the fourth quarter of 2026.
This article was produced under Cointelegraph’s editorial standards; readers are encouraged to independently verify information and consult Cointelegraph’s Editorial Policy for more detail.