Bank of Korea Governor Prioritizes CBDC Over Stablecoins

Bank of Korea Governor Shin Seong-hwan signals a shift toward CBDCs and tokenized deposits, aiming for 25% of the state budget to be digital by 2030.

The approach signals a more cautious stance toward private stablecoins and a drive for greater institutional control over financial infrastructure.

The State Takes Control of Digital Transformation

In his first official statement, Shin emphasized that the Bank of Korea will develop the digital economy through infrastructure that can be strictly regulated and monitored. This includes both the implementation of a Central Bank Digital Currency (CBDC) and the expansion of tokenized bank deposits—a model that preserves the traditional two-tier banking system.

Analysts noted the lack of any mention of private stablecoins as a deliberate signal. According to Shin’s previous research, these instruments create fragmentation and undermine the so-called “singleness of money” because they exist on various blockchains without central control.

Project Hangang Gains Momentum

A key element of the strategy is Project Hangang—an initiative to build an ecosystem around the digital Won. The second phase already involves nine commercial banks and is expanding its scope beyond standard payments.

The government is beginning to test the use of digital currency for real budget expenditures, including subsidies and public payments. The goal is to reduce fraud, accelerate settlements, and increase the transparency of public finances.

The long-term ambition is significant: by 2030, approximately 25% of the state budget is expected to be processed through digital currencies.

Global Strategy Through Project Agora

South Korea is also strengthening its participation in international initiatives, including the Bank for International Settlements’ Project Agora. The project aims to create a unified platform for cross-border payments, combining CBDCs and tokenized deposits.

This is part of a broader strategy to position the Korean Won as a competitive currency in a world where payments are increasingly digitized.

Under Shin’s leadership, the Bank of Korea is sending a clear signal: digital innovation will occur, but within frameworks controlled by the state and the banking system. This places the country in the camp of regulatory-oriented economies that prefer stability and integration over the rapid growth of private solutions.

For markets, this means structured but limited access for new players, especially in the stablecoin segment, which remains outside the official vision for the future of money in South Korea.