Bank of Korea Governor Prioritizes CBDCs and Project Han River

The newly appointed Governor of the Bank of Korea (BoK), Shin Hyun-sung, has officially signaled a strategic shift toward the acceleration of a Central Bank Digital Currency (CBDC). During his inaugural address on April 21, 2026, Shin emphasized the necessity of modernizing the national payment infrastructure to maintain the competitiveness of the Korean won in a rapidly evolving global digital economy. The Governor's speech focused heavily on institutional digital assets while notably omitting mentions of private stablecoins.

Advancing Project Han River and International Cooperation

A primary pillar of Governor Shin’s agenda is the commencement of the second phase of "Project Han River." This initiative is designed to broaden the practical utility of CBDCs and deposit tokens within the domestic financial system. By integrating these digital assets into daily transactions, the BoK aims to enhance settlement efficiency and reduce systemic risks.

• Expansion of the interbank wholesale CBDC network.
• Integration of tokenized deposits for commercial bank use.
• Strengthening the status of the won through the Agora project.
• Collaboration with the Bank for International Settlements (BIS) and other central banks.

Project Agora is a major international initiative involving several central banks to explore the integration of tokenized commercial bank deposits with central bank money on a unified public-private programmable platform.

Strategic Focus on Deposit Tokens Over Stablecoins

While Governor Shin previously acknowledged during his confirmation hearings that stablecoins and CBDCs could potentially coexist, his current policy direction favors regulated deposit tokens. This preference stems from his concerns regarding the structural vulnerabilities of private digital assets. Shin has identified several risks associated with stablecoins issued on public blockchains:

• The lack of a guaranteed 1:1 exchange ratio with fiat currency during market volatility.
• Diminished oversight for central banks since issuance occurs on decentralized public ledgers.
• Potential conflicts with South Korea’s existing foreign exchange regulations.
• Inherent security risks associated with private smart contract vulnerabilities.

CBDCs and stablecoins could coexist based on their respective uses, but given the context of foreign exchange regulations in South Korea, deposit tokens based on CBDCs should be the focus.

The Governor’s approach suggests that South Korea will prioritize a permissioned blockchain framework where the central bank retains essential monetary control. This move is intended to provide a secure environment for digital transactions while mitigating the "de-pegging" risks often associated with algorithmic or private-sector stablecoins.

The Bank of Korea's roadmap under Shin Hyun-sung indicates a clear preference for state-backed digital innovation over private alternatives. By focusing on the second phase of Project Han River and international interoperability, the central bank seeks to establish a robust digital won ecosystem that aligns with global standards and domestic regulatory requirements. Proceeding with CBDC-based deposit tokens allows the BoK to embrace digital transformation while maintaining the stability of the traditional financial sector.