Shin Hyun‑song, the new governor of the Bank of Korea, wants central bank digital currency and bank‑issued deposit tokens to sit at the center of South Korea’s digital money system. In written answers to parliament and in his first public comments, he said CBDC and deposit tokens should form the “core of the digital currency ecosystem.”
Shin argues that a wholesale CBDC issued by the central bank and tokenized deposits created by commercial banks can support safer, more efficient digital payments. This approach builds on Korea’s “Han River” CBDC pilot and links into global projects such as the BIS‑led Agora cross‑border payment experiment.
He also says policymakers can design deposit tokens and CBDC to meet strict anti‑money‑laundering and know‑your‑customer requirements from day one. That focus reflects long‑running concerns at the Bank of Korea about private tokens undermining monetary control or financial stability.
Stablecoins Get a Cautious, Secondary Role
Shin does not reject stablecoins outright, but he clearly places them behind CBDC and deposit tokens. He says a won‑based stablecoin could be introduced, yet trust in the currency and strong compliance must come first.
He views stablecoins as tools for trading tokenized assets and enabling programmable payments, not as replacements for state money. He also questions claims that stablecoins will greatly improve foreign exchange trading, noting that it is still unclear whether blockchain rails can fully satisfy Korea’s capital and FX rules.
Shin suggests that if Korea permits won‑pegged stablecoins, issuance should start with a bank‑centered alliance. Non‑bank firms could join later, once regulators are confident they can meet the same anti‑money‑laundering and customer‑check standards as traditional lenders.
What This Means for Korea’s Digital Won Strategy
The new governor’s stance aligns with the Bank of Korea’s broader message that privately issued crypto assets, including many stablecoins, still fall short of money’s core roles. He says crypto has not yet proven itself as a reliable unit of account, medium of exchange, or store of value, and therefore cannot replace fiat.
Instead, Korea is likely to keep pushing a central-bank-led model in which wholesale CBDC feeds into regulated bank deposit tokens that the public uses for everyday payments. Stablecoins may coexist in that system, but mainly as niche instruments tied to tokenized markets rather than as the main form of digital won.
For global stablecoin issuers, Shin’s message is that South Korea will remain open but cautious.
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