In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the development of central bank digital currencies and bank-issued tokens, while notably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who started his term, highlighted the bank's ongoing pilot projects, including a retail central bank digital currency and deposit token initiative, as well as its participation in a global tokenization effort.
He positioned digital currencies as part of a larger transformation in central banking amid economic challenges and slower growth. The omission of stablecoins from his speech was striking, given the current policy debate in Seoul, where lawmakers are discussing a new law that would regulate stablecoin issuance. Shin had previously suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a framework where the central bank would issue a digital currency, and commercial banks would provide fully convertible deposit tokens.
Shin also announced plans to increase scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking greater access to data to monitor financial risks. Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system for the Korean won.