Bank of Korea Prioritizes CBDCs Under New Governor Shin, Maintains 2.5% Rate Amid Regional Uncertainty

Gate News message, April 22 — South Korea's central bank has entered a new monetary phase with newly appointed governor Shin Hyun-song placing central bank digital currencies (CBDCs) at the forefront of the country's financial system. In his inaugural address, Shin positioned CBDCs and bank-issued deposit tokens as the foundation for future payments innovation, signaling a strategic shift toward state-backed digital money.

The Bank of Korea maintained its benchmark interest rate at 2.50%, marking the seventh consecutive meeting at this level. The decision reflects a cautious monetary stance amid Middle East geopolitical risks, inflation uncertainties, and slowing economic growth. Shin emphasized a measured approach to policy, citing the increasingly blurred paths for inflation and growth that make economic forecasting nearly impossible. The central bank plans to review policy tools to balance supporting a cooling economy while maintaining won stability, and will leverage market price movements as an early warning system to capture systemic shifts in an interconnected banking landscape.

Shin signaled commitment to international digital currency initiatives, including Project Agora to strengthen the Korean won's role in global payments, and Project Hangang to explore real-world applications for digital settlement systems. However, notably absent from his recent address was any mention of Korean won-pegged stablecoins, marking a shift from his earlier stance during his nomination hearing when he expressed openness to private stablecoins as complementary to official bank tokens. This silence comes as South Korean lawmakers have been advancing the Digital Asset Basic Act, with KRW1 becoming the country's first fully regulated stablecoin in February through a collaboration between BDACS and Woori Bank.