Shin Hyun-sung, Governor of the Bank of Korea, stated that the ongoing 'Project Han River' is unrelated to the introduction of a general-purpose central bank digital currency (CBDC) for the general public. He emphasized that personal transaction information is managed by commercial banks, while the Bank of Korea is responsible for interbank fund settlements, alleviating concerns over privacy violations.
During a National Assembly audit held at the Bank of Korea in Jung-gu, Seoul, he remarked, "The Bank of Korea had considered a general CBDC at one time, but we have not reviewed it since 2023."
He further explained, "Project Han River focuses on institutional digital currency, tokenizing the existing two-tier financial and monetary system. We believe there are no concerns regarding personal data."
Project Han River involves the Bank of Korea collaborating with commercial banks to establish a payment system utilizing institutional digital currency and deposit tokens. The Bank of Korea will issue institutional digital currency for interbank fund settlements, while commercial banks will issue deposit tokens based on customer deposits.
During the session, a lawmaker inquired about the management of the deposit token transaction ledger and the potential access of investigative agencies to transaction information. Concerns were raised about whether the Bank of Korea managing the transaction ledger could lead to tracking individual transaction histories or allow financial authorities to utilize this data.
In response, Governor Shin stated, "Personal data is managed entirely by the banks that serve customers. Each bank manages its own transaction ledger, while the Bank of Korea is responsible for interbank settlements."
When asked if there was a possibility of viewing another bank's transaction ledger during interbank transactions, he firmly replied, "No, that is not the case."
Addressing concerns raised by the lawmaker regarding past incidents involving individual ledger management and settlement processes at virtual asset exchanges, Governor Shin assured, "Project Han River is equipped with various safety measures. Considering recent hacking incidents involving artificial intelligence, I believe it has been designed to be quite secure."
* This article has been translated by AI.
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