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 amidst South Korea's ongoing efforts to establish new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail central bank digital currency and deposit token pilot project, as well as its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as a key aspect of the central bank's strategy to navigate economic challenges and sluggish domestic growth.
Notably, Shin's speech did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance. previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led model, where the central bank would issue a central bank digital currency, while commercial banks would provide deposit tokens that can be fully converted into it.
Shin argued that any stablecoin issuance should originate from regulated banks. Furthermore, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional financial institutions, while seeking broader access to data to monitor financial risks.
He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.