Bank of Korea backs CBDC and deposit tokens, downplays won stablecoins
Bank of Korea governor Shin Hyun-song says the central bank will accelerate CBDC and commercial-bank deposit tokens as the “future of money.” In his inaugural policy speech, he pointed to Project Hangang’s second phase to expand retail CBDC use and deposit-token pilots.
The governor framed deposit tokens as a stablecoin-like mechanism, but issued by regulated commercial banks and aimed mainly at institutional transfers. The article also notes critics’ concerns about tighter state oversight, including the risk of restrictive controls over funds.
Notably, Shin’s remarks focused on CBDC and deposit tokens, while the speech did not highlight won-stablecoins that fintechs use to compete with USDT/USDC. The coverage cites his prior cautious stance from the BIS context on risks to financial-market stability.
For traders, the immediate watchpoint is liquidity and cross-border rails tied to CBDC-linked products. Even so, won-stablecoin supply is tiny (about $1.3M, led by KWRQ) versus the global stablecoin market (~$320B+), despite South Korea’s large role in stablecoin payments (around 60% of global flows). (Informational only; not investment advice.)
Neutral
The governor’s focus on CBDC and deposit tokens suggests regulators may steer issuance and adoption toward central-bank or regulated-bank rails, which can improve compliance and potentially stabilize the ecosystem. However, the absence of support for fintech-led won stablecoins, plus concerns about tighter oversight, introduces a risk of reduced upside for those specific tokens.
In the short term, traders may react by rotating liquidity toward CBDC/deposit-token pilots and away from less-regulated won-stablecoin offerings. In the long term, clearer policy direction could enhance cross-border settlement credibility, but only if liquidity grows meaningfully; current won-stablecoin supply is extremely small, limiting immediate price impact. Overall, expectations are more about market structure and rails than about a direct, large price move in any single coin.