In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, but notably did not mention stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing pilot projects, including the retail CBDC and deposit-token initiative, Project Hangang, and its participation in the cross-border tokenization effort, Project Agorá. He positioned digital currency as part of a broader central banking shift amid economic challenges and slower domestic growth.
The omission of stablecoins from his remarks was striking, given their prominence in policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act, which would establish rules 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 bank-led model, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens.
Shin advocated for regulated banks to take the lead in any stablecoin issuance. In addition to payments, Shin indicated that the central bank would increase scrutiny of crypto markets and non-traditional finance, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to track financial risks. He also pledged to modernize currency markets, including introducing 24-hour foreign exchange trading and an offshore won settlement system.