Bank of Korea Governor Nominee Hyun Song Shin Backs CBDC, Voices Reservations About Stablecoins

The Bank of Korea is centering its digital currency policy on central bank digital currencies (CBDCs) and tokenized deposits. Project Hangang is testing the feasibility of using tokenized bank deposits for payments, while Project Agorá is exploring tokenized cross-border settlement. Both initiatives have drawn close attention because of their implications for financial infrastructure and the primacy of central bank money.

In his first address after taking office, new Bank of Korea Governor Hyun Song Shin highlighted efforts to advance Project Hangang and Project Agorá but made no mention of stablecoins. South Korea's National Assembly is separately drafting the Digital Asset Basic Act to regulate stablecoins. Reports did not provide the exact date of the speech, pilot funding or number of participants, but the signal for now is that CBDCs are the priority.

The Bank of Korea's Project Hangang aims to improve the digital payments infrastructure through central bank digital currency (CBDC) and tokenized deposits, reducing settlement risk while preserving financial stability. The initiative is also linked to the Bank for International Settlements' Project Agorá, which explores cooperation on tokenized money and cross-border payments. No related investment amount has been disclosed.

Hyun Song Shin formally took office as governor of the Bank of Korea on April 21, naming Phase 2 of Project Hangang, deposit tokenization, payments innovation and the internationalization of the won as four key reform priorities. The central bank plans to broaden testing of digital currency applications and deepen cooperation with international institutions through Project Agorá, strengthening South Korea's role in the next generation of payment systems.