BOK Governor Rhee Says No Retail CBDC Push, Backs Won Stablecoins

Bank of Korea Governor Rhee Chang-yong said the central bank has no plans to pursue a retail central bank digital currency, or CBDC, for the general public. He also expressed support for introducing won-denominated stablecoins.

Newsis reported on Oct. 12 that Rhee made the remarks during a parliamentary audit before the National Assembly's Strategy and Finance Committee. "We are not pursuing a retail CBDC for the general public, which people are concerned about," he said. "We have not been reviewing it since 2023."

Rhee said the Bank of Korea would "absolutely not" pursue a retail CBDC. He added that the central bank's ongoing Project Hangang is focused on wholesale digital currency and operates within the existing financial and monetary system, distinguishing it from retail CBDC models such as those in China.

Addressing privacy concerns, Rhee said there was no risk of the Bank of Korea accessing personal data because individual commercial banks separately manage personal information and deposit ledgers.

On won stablecoins, Rhee said he is "basically in favor" of their introduction and that the structure would be a consortium led by private banks.

He also said authorities would cooperate to respond to potential risks, including capital outflows through stablecoins. "Most stablecoins are denominated in dollars, so it is unclear how widely won stablecoins would be used," Rhee said. "Still, we will cooperate with the authorities to prepare for potential risks."