In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, while notably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing retail CBDC and deposit-token pilot project, as well as its participation in the cross-border tokenization initiative, Project Agorá. He positioned digital currency as part of a larger transformation in central banking amidst economic challenges and slower domestic growth.
The omission of stablecoins from his speech was striking, given the current policy debate in Seoul, where lawmakers are discussing the Digital Asset Basic Act, which would establish rules for stablecoin issuance. Previously, Shin had 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 deposit tokens fully convertible into it. Shin argued that any stablecoin issuance should originate from regulated banks. Additionally, he signaled increased scrutiny of crypto markets and non-bank finance, with plans to expand monitoring of cryptocurrencies and other non-traditional assets, and seek broader access to data to track financial risks. Shin also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.