In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, without mentioning stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who started his term, referenced the bank's ongoing retail CBDC and deposit-token pilot project and its participation in a cross-border tokenization initiative. He positioned digital currency as part of a broader central banking shift amid economic challenges and slower growth. Notably, stablecoins were absent from his remarks, despite being a key issue in Seoul's policy debate.
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 for CBDC issuance and deposit tokens, with commercial banks providing tokens fully convertible into CBDCs. Shin also announced plans to increase scrutiny of crypto markets and non-bank finance, expand monitoring of cryptocurrencies, and improve access to data for tracking financial risks.
Additionally, he pledged to modernize currency markets, including introducing 24-hour foreign exchange trading and an offshore won settlement system.