In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who began his term, emphasized the bank's participation in the retail CBDC and deposit-token pilot project, Project Hangang, and its involvement in the cross-border tokenization initiative, Project Agorá.
He positioned digital currency as part of a broader central banking shift amidst economic challenges and slower domestic growth. Notably, Shin's remarks excluded stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act. Previously, Shin suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner.
His speech outlined a bank-led model, where the central bank issues a CBDC and commercial banks provide fully convertible deposit tokens. Shin advocated for regulated banks to initiate stablecoin issuance. Additionally, he announced plans to increase scrutiny of crypto markets and non-bank finance, expanding monitoring of cryptocurrencies and seeking broader data access to track financial risks.
The governor also pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.