New Governor of South Korea's Central Bank Commits to Advancing CBDC and Deposit Tokens, Questions Remain on Stablecoins

According to The Block, Shin Hyun-song, the newly appointed governor of South Korea’s central bank, delivered an inaugural speech promising to promote the development of central bank digital currency (CBDC) and deposit tokens. He stated that the related applications would be expanded through the second phase of the ‘Han River Project’ and that the bank would participate in global collaborations such as Project Agora to strengthen the position of the Korean won in the global payment system. Notably, Shin did not mention the Korean won stablecoin in his speech, despite South Korean legislators actively pushing for the ‘Basic Digital Assets Act’ to establish a legal framework for stablecoins, with discussions expected to resume after the regional elections on June 3. Previously, during his tenure at the Bank for International Settlements (BIS), Shin held a negative view on stablecoins, believing they could not replace currency. However, reports indicate that his stance has shifted, suggesting that the Korean won stablecoin should coexist with CBDC.