South Korea's new central bank governor Shin Hyun-song's statements indicate an interesting turning point. In his speech yesterday, he strongly supported the development of CBDCs and tokenized deposits. He is especially focused on expanding these digital assets in the second phase of the Han River Project and increasing the won's influence in the global payments system.

Participation in international initiatives like Project Agora is planned. The goal is for the won, as South Korea's currency, to have a greater presence on the international stage. However, the interesting part is the apparent shift in his approach to stablecoins. During his time at the Bank for International Settlements, Shin was quite critical of stablecoins. Now, according to reports, he seems to believe that won-backed stablecoins could coexist with CBDCs.

Legislative efforts to establish a legal framework for stablecoins in South Korea are ongoing. However, Shin did not directly mention won-backed stablecoins in his speech. This indicates that the topic is still sensitive. But it’s clear that the overall stance is softening. There is a move toward a more pragmatic approach in the digital assets space. They are probably considering a model where the CBDC-focused strategy and the stablecoin ecosystem can work together. These steps will be very important in the context of the digitalization of central banking.