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BOK Governor Nominee Says Won Stablecoins Can Coexist With CBDC

Suehyeon Lee

Summary

Shin Hyun-song, the Bank of Korea governor nominee, said a digital-currency system centered on CBDC could coexist with won stablecoins.
Shin said he would expand the use of CBDC and deposit tokens backed by central bank trust through initiatives including Project Hangang Phase 2.
Shin said participation in Project Agorá would strengthen links between payment and settlement systems, and that won stablecoins could take root in the future monetary ecosystem in both complementary and competitive ways.

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Shin Hyun-song, nominee for Bank of Korea governor, said a won-denominated stablecoin could coexist with a digital-currency system centered on a central bank digital currency, or CBDC.

In opening remarks at a National Assembly confirmation hearing on April 15, Shin named the creation of a digital-currency ecosystem as a key task. He said the BOK would broaden the use of CBDCs and deposit tokens backed by trust in the central bank through initiatives including the second phase of Project Hangang.

Shin also laid out an international cooperation agenda. Participation in Project Agorá would strengthen links among domestic and cross-border payment and settlement systems, he said, improving the efficiency of international payments infrastructure.

On the private sector's role, Shin said won stablecoins could find a place in the future monetary ecosystem in ways that are both complementary and competitive.