Digital KRW settlement discussions include CBDCs issued by a central bank, deposit tokens that represent bank deposits, and private stablecoins backed by reserves.
CBDC
Digital money designed as a central bank liability, with strong finality and public infrastructure characteristics.
Deposit Token
A payment instrument that represents a bank deposit in token form and operates inside the banking regulatory perimeter.
Stablecoin
A private digital asset designed to track a reference currency through reserves and redemption mechanisms.
For users, the key difference is who issues the asset, who owes redemption, and what legal protections may apply.
| Type | Main value | Watch point |
|---|---|---|
| CBDC | Central bank trust and settlement finality | Private-sector use may depend on policy design. |
| Deposit Token | Bank deposit-based payments and enterprise settlement | Check issuing bank, deposit protection scope, and transfer rules. |
| Stablecoin | Open networks and global distribution | Reserves, redemption, freezing powers, and compliance are core risks. |
The Bank of Korea has discussed CBDCs and deposit tokens as primary settlement assets for tokenized finance, while treating stablecoins as a complementary model.
- Project Hangang is a key example of deposit-token-based settlement experimentation.
- Private KRW stablecoins may still serve payments, remittance, and exchange liquidity demand.
- Regulatory choices may split bank-led, fintech-led, and VASP-led models.
Tokens with similar names can have very different safeguards and use cases. Start with these questions before using one.
Questions before real use
- Who owes redemption, and when can the token be converted back to cash?
- Are reserves or deposit-based assets audited and disclosed?
- What happens during freezing, network outages, or transfer suspensions?