In his maiden speech, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued digital currencies and bank-backed tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, highlighted the bank's ongoing pilot projects, including the retail central bank digital currency and deposit token initiative, known as Project Hangang, and its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements.
He positioned digital currencies as a key component of the central bank's strategy to navigate economic challenges and slower growth. Notably, Shin's address did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers debating 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 vision for a bank-led model, where the central bank would issue a digital currency, while commercial banks would provide fully convertible deposit tokens. Furthermore, Shin announced plans to increase scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking greater access to data to monitor potential financial risks.
He also pledged to modernize currency markets by introducing 24-hour foreign exchange trading and an offshore settlement system for the South Korean won.