In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued deposit tokens, while noticeably omitting stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC and deposit-token pilot project, as well as its participation in a global cross-border tokenization initiative. He positioned digital currency as a key component of the central bank's response to economic challenges and slower domestic growth. The absence of stablecoins from his speech was striking, given the current policy debate in Seoul surrounding the proposed Digital Asset Basic Act, which would establish guidelines for stablecoin issuance.
Shin had previously suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a framework in which the central bank would issue a CBDC, while commercial banks would provide fully convertible deposit tokens. Additionally, Shin announced plans to enhance monitoring of crypto markets and non-traditional financial institutions, seeking greater access to data to track potential financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.