Key Takeaways:

• Bank of Korea (BOK) Governor Shin Hyun-song, sworn in on April 21, 2026, made CBDC and deposit tokens the centerpiece of his inaugural address.
• Project Hangang Phase 2, now involving 9 banks, targets government subsidy use cases worth up to 110 trillion won ($73B).
• Shin’s omission of stablecoins from his first speech signals a state-first digital won strategy as South Korea finalizes its Digital Asset Basic Act.

Project Hangang Phase 2 Takes Center Stage as New BOK Governor Outlines Digital Won Plans

Shin took office, succeeding Rhee Chang-yong at the start of a four-year term. His first major policy speech made no mention of won-denominated stablecoins, a notable omission given that South Korea is actively debating stablecoin rules under the pending Digital Asset Basic Act.

The BOK’s position, as Shin framed it, centers on a two-tier model. The central bank issues a wholesale or hybrid CBDC. Commercial banks issue deposit tokens that are fully convertible and designed for everyday payments and settlements. Neither layer leaves room for a privately issued alternative at the top of the stack.

Shin pointed directly to Phase 2 of Project Hangang, the BOK’s flagship digital won pilot, as the mechanism to “increase the usability of CBDC and deposit tokens.” Phase 2 launched in March 2026 and has since expanded to nine major commercial banks. Real-world transaction testing is underway, with potential applications including government subsidy disbursements valued at up to 110 trillion won, approximately $73 billion.

Phase 1 of Project Hangang focused on technical testing of a blockchain-based digital won. Phase 2 moves into applied use, exploring programmable money, regulatory compliance tools, and integration with existing payment infrastructure.

Shin also referenced BOK’s participation in Project Agora, a BIS-led cross-border tokenization initiative. The project explores multi- CBDC platforms for faster international payments and settlements. For Shin, BOK involvement in Agora ties directly to a stated goal of expanding the Korean won’s role in global digital payments without loosening capital controls or destabilizing the financial system.

Additional priorities in the speech included 24-hour foreign exchange trading, an offshore won settlement system, and tighter oversight of crypto markets and non-bank financial institutions. Shin said the BOK would pursue “cautious and flexible” monetary policy throughout his term.

The stablecoin omission drew immediate attention from observers. During his mid-April confirmation hearing before parliament, Shin had taken a more open position. In written remarks submitted to lawmakers, he stated that CBDCs and deposit tokens would “coexist with stablecoins in a manner that is supplementary and competitive to each other,” and that any stablecoin issuance should begin with regulated banks. The shift in tone from nominee to governor was deliberate, according to observers watching the process.

Shin brings a specific international background to the role. He served as Economic Adviser and later Head of the Monetary and Economic Department at the Bank for International Settlements from 2014 until early 2026. Before the BIS, he held academic posts, including a position at Princeton University. His tenure at the BIS overlapped with several collaborative CBDC experiments, including earlier joint projects involving South Korea.

The commercial banking sector stands to gain significant positioning under Shin’s framework. Deposit tokens place commercial banks at the center of digital money distribution, giving them a direct role in programmable finance while keeping central bank oversight intact.

Crypto markets and non-bank financial entities face increased scrutiny under the new governor. Shin pledged better data access for risk tracking and closer monitoring of activity outside the traditional banking system.

South Korea’s CBDC development has progressed through two governors. Rhee Chang-yong advanced technical pilots and explored subsidy applications. Shin takes over at the commercialization phase, with a clear preference for regulated, interoperable infrastructure over broader private-sector experimentation.

What is Ethereum?

With a market capitalization of around $233 billion, Ethereum is the second-largest cryptocurrency. That places it well below Bitcoin’s roughly $1.33 trillion market cap, but significantly ahead of third-place Tether, which sits at $183 billion.

One major distinction sets Ethereum apart from other cryptocurrencies: It’s not simply digital money. It operates as a decentralized computing platform, allowing users to build and run applications without oversight from any company or bank.

In basic terms, developers use Ethereum’s blockchain network (instead of, say, Amazon or Google servers) to create apps for activities like borrowing, lending, investing, trading, and more. ETH, the token, is the currency used for these operations.

Ethereum price history

When Ethereum’s initial coin offering (ICO) launched in 2014, it cost just 31 cents per share. Since then, its value has climbed by more than 60,000%.

Looking at the past five years (2020-2025), Ethereum has risen by a solid 46%. But that figure doesn’t tell the whole story. Ethereum has been subject to extreme volatility, peaking at nearly $5,000 in August 2025. That represents nearly 1.6 million percent growth from its original ICO—making that previous 60,000% increase seem modest by comparison.

Since then, ETH has seen gains exceeding 80% and losses surpassing 60%—that is to say, virtually every dramatic swing imaginable. Early 2026 brought a steep drop in Ethereum’s value due to several factors, including recession fears and Ethereum co-founder Vitalik Buterin selling millions of dollars worth of ETH.

The bottom line is that Ethereum can deliver both enormous gains and enormous losses, which is typical of other major cryptocurrencies too.

Ethereum vs. Bitcoin

In the cryptocurrency rankings, Ethereum trails far behind Bitcoin for the top spot.

But keep in mind, Ethereum wasn’t designed primarily to serve as a currency; its main purpose was to function as a decentralized computing platform. Ethereum has a wide range of real-world uses, and its developer community is huge. This appeals to investors because it offers growth potential beyond simply being an “alternative currency.”

Here’s an easy framework for understanding the difference between these two currencies:

• Think of BTC as digital gold—a straightforward currency designed to store and transfer value.
• Think of ETH as digital oil—the fuel that keeps decentralized apps and smart contracts running across the Ethereum network.

What is Ethereum staking?

Staking represents another feature that sets Ethereum apart from Bitcoin.

Before 2022, Ethereum’s network was secured by thousands of computers competing to solve random puzzles (called “proof of work”). When your computer successfully solved a puzzle, you’d earn some ETH as a reward. It sounds strange, but it proved effective for maintaining an honest ledger.

Because this approach burned significant amounts of electricity and didn’t really make sense, Ethereum chose to replace it with something called “staking.” With staking, you lock up your ETH as a security deposit to help verify transactions. In return, you earn a reward similar to what proof of work provided. Essentially, you’re earning interest on your staked amount.

What affects Ethereum’s price?

A few key things can affect Ethereum’s price:

• Investor speculation: Like most cryptocurrencies, Ethereum’s short-term price often moves with hype and trader sentiment. In the near term, excitement (or panic) can drive prices more than anything else.
• Network activity and DeFi growth: The more people use Ethereum, the more demand there is for ETH. A good example was the DeFi surge in 2020–2021, when heavy network use helped push prices up.
• Economic conditions: While Ethereum doesn’t always move in lockstep with interest rates or the stock market, the economy still plays a role. When people feel confident financially, they’re more open to putting money into assets like crypto.
• Regulation: Because crypto is still developing as an industry, new laws and regulations can have a big impact. Positive headlines can build confidence, while uncertainty tends to make investors cautious.
• Competition: Ethereum isn’t the only smart contract platform anymore. Projects like Solana and Avalanche offer faster or cheaper alternatives, so how Ethereum continues to evolve will help determine its long-term success.

How to buy and invest in Ethereum

There are many ways to invest in Ethereum with varying degrees of risk. Below are some of the most popular options.

Buy Ethereum on a crypto exchange

Buying ETH directly represents the most hands-on investment method. You’ll open an account with a cryptocurrency exchange and connect your bank account to purchase and store ETH in a digital wallet.

Invest in Ethereum ETFs

If directly managing crypto doesn’t appeal to you (think handling wallets and private keys) an Ethereum ETF could be a better option. These funds hold the crypto for you while their shares trade on stock exchanges just like traditional stocks.

Buy Ethereum-related stocks

You can invest in publicly traded companies with close ties to Ethereum as a way to gain exposure without directly owning ETH. This might include blockchain technology companies, firms holding substantial amounts of ETH on their balance sheets, and the like. This approach lets you benefit from Ethereum’s performance indirectly.

Open a crypto IRA that holds Ethereum

A crypto IRA allows you to hold Ethereum within a tax-advantaged retirement account. It functions like a traditional or Roth IRA, offering the same contribution limits and tax benefits.

Cryptocurrency prices today

Ethereum is one of the most ubiquitous cryptocurrencies, but it’s far from the only option. Consider the following options when deciding where to place your money.

• Bitcoin: Bitcoin is the first and most well-known cryptocurrency. It’s a decentralized digital currency built to serve as both a store of value and a peer-to-peer payment system.
• Tether: Tether is what’s known as a stablecoin. Its value is pegged to another asset, in this case, the U.S. dollar. Because of that, it tends to be much less volatile than Ethereum, though it also lacks the same potential for long-term growth.
• XRP: Created to make moving money across borders faster and cheaper than traditional methods, XRP offers near-instant transactions with minimal fees.

Is it a good time to invest in Ethereum?

Unlike established blue-chip stocks such as Exxon Mobil, Johnson & Johnson, or IBM, Ethereum is still a relatively young asset. There’s no guaranteed way to predict how ETH will perform in the years or decades ahead. Even so, its performance over the past decade has been incredible, and its usefulness goes far beyond that of a simple tradable token; it underpins a huge and expanding network of financial applications and developer tools.

Keep in mind, though, that Ethereum has a history of sharp downturns, so be prepared for volatility. It isn’t a good fit for investors with a low tolerance for risk. Stay aware of emerging blockchain competitors, and don’t overconcentrate your holdings. ETH is best viewed as a smaller, strategic component of a well-diversified portfolio.

Frequently asked questions