New BOK Governor Prioritizes CBDCs While Leaving Stablecoins Out of First Speech

Highlights:

• The new BOK governor prioritized CBDCs over stablecoins in his first speech to strengthen control over digital payments.
• South Korean lawmakers are drafting new rules to regulate stablecoin issuance and digital asset payments.
• Financial firms in Korea are building stablecoin payment systems despite delays in regulatory approval.

Shin Hyun-song prioritized central bank digital currencies over stablecoins in his first speech as Bank of Korea governor in Seoul on Tuesday. He outlined this policy direction at the central bank headquarters to define how Korea will manage digital payments. The new BOK governor focused on CBDCs and deposit tokens to ensure the central bank retains control over settlement systems.

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🇰🇷Shin Hyun-song said he will support CBDCs and deposit tokens as Bank of Korea governor.

He did not mention stablecoins, even as South Korea works on related laws. He has also previously been critical of stablecoins during his time at Bank for International Settlements. pic.twitter.com/H89Y4VjupR

— Skipper | XRPL (@skipper_xrp) April 21, 2026

Shin said the Bank of Korea will expand CBDCs and deposit tokens through Phase 2 of Project Hangang. He introduced this plan to guide the next stage of digital currency testing across financial institutions. The project allows the bank to test settlement systems and payment flows using real transaction data. It also helps assess how digital money can improve efficiency in banking operations.

Moreover, Shin said the bank will support cross-border payments using digital currency tools. He explained this plan to strengthen the global use of the Korean won. He also said the bank will cooperate with international projects such as Project Agora. This effort aims to align Korea with global payment systems and standards.

Shin also addressed economic risks during the speech. He said supply shocks from the Middle East continue to affect inflation and economic growth. He said the bank will respond with a flexible monetary policy to manage these risks. Therefore, digital finance now supports broader economic stability goals.

Shin said:

“Uncertainty over inflation and growth has increased due to supply shocks from the Middle East. We will pursue price stability and financial stability through flexible policy management. We will also expand digital currency tools to strengthen the financial system.”

Stablecoin Debate Builds as Korea Prepares Digital Asset Rules

The new BOK governor did not mention stablecoins in his speech in Seoul on Tuesday. This omission stands out because stablecoins now play a growing role in South Korea’s digital payment market. It also comes as regulators and lawmakers work to define rules for digital assets.

South Korean lawmakers are drafting the Digital Asset Basic Act to regulate stablecoin issuance and payment usage. They are preparing this bill to establish legal standards for how stablecoins operate in the financial system. However, lawmakers have delayed further discussion until after the June 3 regional elections. This delay has left the market without a clear regulatory direction.

Meanwhile, the South Korean Ministry of Economy and Finance is preparing a pilot to test blockchain-based deposit tokens for government spending. This system will help officials minimize delays and manual checks as they process public expenses.

NEWS: 🇰🇷South Korea plans to replace government credit cards with blockchain-based "deposit tokens" starting in Sejong City this Q4 2026, leveraging programmable digital currency to ensure transparent spending and eliminate merchant fees. pic.twitter.com/inhSlVfaNl

— SolanaFloor (@SolanaFloor) April 16, 2026

New BOK Governor Sets Broader Policy Direction Beyond Inflation and Rates

Shin also outlined broader policy goals in his address to the Bank of Korea. He said inflation and economic growth face rising uncertainty due to supply disruptions from the Middle East. Shin plans to manage monetary policy carefully to address these risks.

He said the Bank of Korea will pursue both price stability and financial stability through coordinated policy actions. The new BOK governor also said the bank will strengthen coordination with the government to improve policy outcomes. In addition, he aims to improve communication with financial markets to reduce uncertainty.

During his time at the Bank for International Settlements, Shin criticized stablecoins for fragmenting payment systems. However, recent reports show he now supports stablecoins operating alongside CBDCs under regulation.

The Bank of Korea also recently co-hosted a two-day seminar with the Banque de France to examine how digital assets and climate risks affect the global economy. The program operates under a joint exchange framework that rotates annually between South Korea and France.

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