Bank of Korea clarifies stance on stablecoins and digital currency

Shin emphasized that stablecoins, by design, are intended to function on decentralized blockchain networks independent of central bank oversight. While the Bank of Korea reserves the right to comment on monetary stability, it will not act as a service provider for these assets. This position aligns with ongoing debates regarding won-backed stablecoins, where the bank previously signaled a preference for bank-led consortiums to ensure financial safeguards.

Separately, the governor distinguished these private efforts from Project Hangang, the bank's initiative to modernize the two-tier monetary system using institutional digital currency and commercial bank-issued deposit tokens. Under this model, the central bank facilitates interbank settlement, while commercial banks maintain direct relationships with customers and manage account data. Shin explicitly stated that the Bank of Korea has moved away from pursuing a general-purpose retail CBDC, a path it abandoned in 2023. Private financial institutions continue to test their own blockchain-based payment services, including cross-border trade settlement and tokenized securities, independent of the central bank's infrastructure projects.