- Bank of Korea Governor says the ongoing US-Iran war has led to supply shocks.
- Shin Hyun-song plans to pursue flexible monetary policies during his four-year tenure.
- Hyun-song stated that he will pursue CBDC implementation, but did not mention stablecoins.
New Bank of Korea Governor Shin Hyun-song has hinted at pursuing flexible monetary policies during his four-year term, which began on Tuesday, April 21, 2026. According to Hyun-song, uncertainty regarding the path of prices and growth has increased due to supply shocks caused by the war in the Middle East, necessitating the price for price stability and financial stability.
More Details About Hyun-song’s Plans
Giving further details about his plans as the Governor of South Korea’s apex bank, Hyun-song vowed to support innovation in blockchain-based finance. He also highlighted plans to play an active role in the structural reform of Korea’s national economy.
Hyun-song was a former head of the Monetary and Economic Department at the Bank of International Settlements (BIS). He included in his inaugural speech plans to protect the stability of settlement and payment systems and promote the global use of the national currency in a digitalized financial ecosystem.
As part of the steps to achieve his goal, the new Governor said the Bank of Korea will expand the use of central bank digital currency (CBDC) and deposit tokens through the second phase of Project Hangang—a Bank of Korea (BOK)-led pilot project designed to test a blockchain-based digital currency ecosystem, focusing on integrating Wholesale Central Bank Digital Currency (CBDC) and tokenized deposit tokens.
Meanwhile, Hyun-song also plans to cooperate with global initiatives, such as Project Agora—a collaborative financial initiative led by the Bank for International Settlements (BIS) and seven central banks to test a unified ledger system for cross-border payments. According to him, such partnerships will strengthen the Korean won’s position in the global payment system.
No Mention of Stablecoins
It is worth noting that the new central bank governor did not mention Korean won-pegged stablecoins in his speech, despite their integration into South Korea’s digital transformation. This omission caught the attention of industry stakeholders, who recall that South Korean legislators have been working to establish a legal framework for local stablecoins as part of the Digital Asset Basic Act, a comprehensive set of rules for digital assets.
Notably, financial players in the region have been expanding their businesses to cover stablecoins and digital asset-based payments in anticipation of the upcoming legislation. Industry participants understand the ongoing delays in the bill, considering the upcoming June 3 elections, after which they expect discussions to resume.
In the meantime, most digital asset observers view Hyun-song as a non-supporter of stablecoins. During his tenure at BIS, he published a report arguing that stablecoins cannot replace traditional currencies, citing fragmentation across different tokens. However, he later shifted his stance, proposing the establishment of won-based stablecoins that will co-exist with CBDCs.
Related: South Korea to Legalize RWAs and Stablecoins Under Existing Laws
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