In his April 21 inaugural address, **South Korea’s new Bank of Korea Governor Shin Hyun-song laid a firm stake in the ground The country’d digital money future is supported by central bank digital currency ( CBDC) and bank-issued deposit tokens not private stablecoins. ** **
Key Takeaways:
The centerpiece of his first address was CBDC and deposit tokens, which were proclaimed by * Bank of Korea (BOK) Governor Shin Hyun-song, who was sworn in April 21, 2026.
Now with 9 banks, * Project Hangang Phase 2 focuses on the government subsidy use cases of up to 110 trillion won ($73B)).
As South Korea completes its Digital Asset Basic Act, * Shin’s omission of stablecoins from his first speech signals a state-first digital won strategy.
Project Hangang Phase 2 Takes Center Stage as New BOK Governor Outlines Digital Won Plans
Shin assumed power, succeeding Rhee Chang-yong at the start of a four year term. A notable omission is that South Korea is actively debating stablecoin rules under the pending Digital Asset Basic Act, which has made no mention of won-denominated stable coins in his first major policy speech.
Shin framed it, the position of BOK’s position is focused on a two-tier model. In the central bank, there is a wholesale or hybrid CBDC issued by the Central Bank. The full convertible deposit tokens are issued by commercial banks, and are designed for everyday payments and settlements. Neither layer leaves room for an individual issued variant at the top of stack.
Shin pointed directly to Phase 2 of Project Hangang, the BOK’s flagship digital won pilot (the mechanism) as well as “increase the usability of CBDC and deposit tokens”. In March 2026, a phase 2 of ” Phase 2 has since grown to nine large commercial banks. Real-world transaction testing is underway, with applications such as government subsidy disbursements valued at up to 110 trillion won (about $73 billion) and about $13billion.
In Project Hangang, phase 1 of Phase 1 was about technical testing of a blockchain-based digital won. phase 2, which enters the field of applied use, explores programmable money, regulatory compliance tools and integration with existing payment infrastructure.
Similarly, Shin mentioned BOK’s role in Project Agora, a cross-border tokenization program run by BIS that was also part of the project. Project explores multi- CBDC platforms for faster international payments and settlements. Shin’s involvement in Agora for BOK is directly related to a stated goal of “extending the Korean won’s role in global digital payments without loosening capital controls or destabilizing the financial system” (for example, Japan and Korea) as part of its relationship with Azera.
More important to the address was 24-hour foreign exchange trading, an offshore won settlement system and tighter control of crypto markets and non-bank financial institutions. Shin said the BOK would pursue “cautious and flexible” monetary policy throughout his term.
The observers gathered immediate attention to this short-lived stablecoin omission. Shin was more open during a mid-April confirmation hearing before parliament that he had taken up the position of an “opener” person. His written comments to lawmakers argued that CBDCs and deposit token would “coexist with stablecoins in a way that is complementary and competitive to each other” and that any stable coin issued should begin with regulated banks. Observers watching the process said that “the shift in tone from nominee to governor was deliberate.”
Shin has a foreign background in the role, and is an international figure. His role as Economic Adviser and later Head of the Monetary, along with his economic department in Bank for International Settlements was until early 2026 (2014). He wrote academic posts, including a job at Princeton University before the BIS. He was also a member of the BIS, where his tenure overlapped with several collaborative CBDC experiments (including earlier joint projects in South Korea).
Under Shin’s framework, the commercial banking sector will be positioned significantly. A commercial bank is directly involved in the programming of programmable finance, and remains central bank oversight intact at the center of digital money distribution by deposit tokens.
The new governor has heightened scrutiny of crypto markets and non-bank financial entities. In Shin, he promised to provide better data access for risk tracking and closer monitoring of activity outside the traditional banking system.
Two governors have been working to develop South Korea’s CBDC development, which has progressed. The Rhee Chang-yong developed the technology pilots of technical pilot and investigated subsidy applications. The commercialization phase is dominated by Shin; the latter prefers controlled, interoperable infrastructure over more extensive private-sector experimentation.
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