[2026 Audit] Shin Hyunsong: "We Will Never Pursue a General-Purpose CBDC," Reiterates

Won-denominated stablecoins: How widely they will be used remains uncertain
Will work with authorities to prepare for potential risks

Bank of Korea Governor Shin Hyunsong emphasized that the central bank would not pursue a "general-purpose CBDC (central bank digital currency)," a digital currency supplied directly to individuals that has raised concerns about privacy violations.

Bank of Korea Governor Shin Hyun-song answers lawmakers' questions during the National Assembly Finance and Economy Planning Committee's audit of the Bank of Korea, held at the BOK in Jung-gu, Seoul, on the 12th. Yonhap News, joint coverage.

Asked by Rep. Lim I-ja of the People Power Party whether there was a possibility of pursuing a general-purpose CBDC, given concerns about privacy violations, during the National Assembly's Strategy and Finance Committee's audit of the Bank of Korea in Jung-gu, Seoul, on October 12, Governor Shin said, "We have not considered it since 2023," adding, "We will absolutely not pursue it."

The Bank of Korea is using wholesale digital currency, which is used only between the central bank and banks, as part of Project Hangang. Banks and individuals use deposit tokens, which function like existing bank deposits.

Regarding won-denominated stablecoins issued by the private sector, he said, "We are basically in favor," adding, "The approach will be to form a consortium led by private banks, in line with the government's agreed plan."

In response to Rep. Lim's question about potential side effects, such as large-scale capital outflows, Governor Shin said, "I believe it will depend on the scale. Most stablecoins currently in circulation are dollar-denominated, so it is uncertain how widely won-denominated stablecoins will be used." He added, "We will work with the authorities to prepare for potential risks."

This content was produced with the assistance of AI translation services.