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 the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing pilot projects, including Project Hangang, which focuses on retail CBDCs and deposit tokens, as well as its participation in Project Agorá, a global tokenization initiative led by the Bank for International Settlements.
He positioned digital currencies as a key aspect of central banking's evolution amidst economic challenges and sluggish domestic growth. Notably, stablecoins were not mentioned, despite being a major topic of discussion in Seoul's policy debates, particularly with regards to the proposed Digital Asset Basic Act. Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner.
His speech outlined a framework where the central bank would issue a CBDC, while commercial banks would provide fully convertible deposit tokens. Additionally, Shin emphasized the need for closer monitoring of crypto markets and non-bank financial institutions, seeking enhanced access to data to mitigate financial risks.
He also pledged to modernize currency markets by introducing 24-hour foreign exchange trading and an offshore won settlement system.